Incentive Pay, Benefits, Chevron:
Running head: INCENTIVE PAY, BENEFITS, CHEVRON
Incentive Pay, Benefits, Chevron: A Compensation Strategy that Motivates
Terra Pegram
Strayer University
Chevron at a Glance With operations in more than 100 countries, more than 62,000 employees and 5,000 service stations, Chevron is one of the largest integrated energy companies in the world. The company operates across the entire supply chain, from exploration and production to refining, marketing, and transportation of an assortment of petroleum products – crude oil, natural gas, and coal (www.chevron.com). Chevron’s success is owed to a string of divestures, acquisitions and mergers dating back to the early 1980’s. In more recent years, policies to promote renewable energy have multiplied around the world. Both Secretary of State Hillary Clinton and President Barack Obama campaigned on renewable energy or the creation of green jobs as essential to their energy plans. Chevron has responded by investing in renewable and advanced technologies, such as non food based biofuels, hydrogen fuel systems, geothermal, solar and wind power protect and sustain the environment. These investments coupled with accusations of pollution create the need for environmental engineers to assist in the prevention, control and remediation of environmental health hazards. Motivation Employers want employees to perform in ways that lead to better organizational performance (Milkovich & Newman, 2008, p. 256). According to Milkovich and Newman (2008), incentive pay and other rewards should be used to reinforce desired behavior, but compensation alone will not attract and retain top performing employees (p. 258). Improving motivation is the key to managers at Chevron attracting the best environmental engineers, retaining them and getting them to develop new skills in a rapidly changing environment/workplace and be more skillful and productive in doing so. Two theories in particular that are
Incentive Pay, Benefits, Chevron: A Compensation Strategy that Motivates
Terra Pegram
Strayer University
Chevron at a Glance With operations in more than 100 countries, more than 62,000 employees and 5,000 service stations, Chevron is one of the largest integrated energy companies in the world. The company operates across the entire supply chain, from exploration and production to refining, marketing, and transportation of an assortment of petroleum products – crude oil, natural gas, and coal (www.chevron.com). Chevron’s success is owed to a string of divestures, acquisitions and mergers dating back to the early 1980’s. In more recent years, policies to promote renewable energy have multiplied around the world. Both Secretary of State Hillary Clinton and President Barack Obama campaigned on renewable energy or the creation of green jobs as essential to their energy plans. Chevron has responded by investing in renewable and advanced technologies, such as non food based biofuels, hydrogen fuel systems, geothermal, solar and wind power protect and sustain the environment. These investments coupled with accusations of pollution create the need for environmental engineers to assist in the prevention, control and remediation of environmental health hazards. Motivation Employers want employees to perform in ways that lead to better organizational performance (Milkovich & Newman, 2008, p. 256). According to Milkovich and Newman (2008), incentive pay and other rewards should be used to reinforce desired behavior, but compensation alone will not attract and retain top performing employees (p. 258). Improving motivation is the key to managers at Chevron attracting the best environmental engineers, retaining them and getting them to develop new skills in a rapidly changing environment/workplace and be more skillful and productive in doing so. Two theories in particular that are
References: Buhler, P. (2003). Managing in the new millennium. Supervision, 64(12), 20. Retrieved from MasterFILE Premier database. Gross, S., & Friedman, H. (2004). Creating an effective total reward strategy: Holistic approach better supports business success. Benefits Quarterly, 20(3), 7-12. Retrieved from Academic Search Premier database. Hartley, L. (2008). Can pay really make the difference?. Workforce Management, 87(17), S5. Retrieved from Academic Search Premier database. Kilduff, M., & Baker, D. (1984). Getting down to the brass tacks of employee motivation Milkovich, G. & Newman, J. (2008). Business 525: Reward systems: theory & administration; second custom edition (9th ed) Menefee, J., & Murphy, R. (2004). Rewarding and retaining the best: Compensation strategies for top performers. Benefits Quarterly, 20(3), 13-20. Retrieved from Academic Search Premier database. Sheriff, D. (2007). Understanding their motivation helps retain staff. Lawyer, 21(26), 39. Retrieved from Academic Search Premier database. U. S. Department of Labor, Bureau of Labor Statistics. (2009, November 27). Engineers. Retrieved from http://www.bls.gov/oco/ocos027.htm Appendix A