help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Compensation and termination (Lead) Read the following scenario and then answer the questions that follow

Compensation and termination (Lead) Read the following scenario and then answer the questions that follow

Management

Compensation and termination (Lead)

Read the following scenario and then answer the questions that follow.

  © Shutterstock Images

MANAGEMENT AT WORK

Denise Owens, the owner and CEO of Extreme Routes, an indoor rock-climbing gym, needed to clear her head. She wanted to do what she did best—climb a really difficult route, at least a 5.11 on the Yosemite Decimal System, and preferably with a difficulty suffix of c or d.

“Kitty, will you set up a new route for me? And make it hard.”

“Sure thing, boss. Is 5.12d okay?” Kitty, the route setter and instruction manager, had been at Extreme Routes for seven years and was one of Denise’s closest friends.

“Perfect!”

Knowing a treat would be waiting for her that afternoon, Denise turned back to the spreadsheet in front of her. What was she going to do about these expenses? She had good staff, and she wanted to keep them, but she wasn’t sure she was spending her budget for salaries and benefits most effectively.

Denise had a basic compensation plan in place. Route setters were paid the most, because without new routes, the gym’s clients wouldn’t keep returning. Climbing instructors had the next highest take-home pay, and front desk staff were paid the least. Everyone who worked for Denise had medical, dental, vision, and life insurance. During the last staff meeting, both Kitty and Misha, the front desk manager, mentioned that some of the employees weren’t working as hard as they could and that there wasn’t much teamwork among the staff.

If Denise decides to pay above market wages, she will find that she:

Loses employees to tumover

Attracts and keeps better employees

Decreases the profitability of the gym

Increases the gym's overall costs

After expenses. Denise cleared $500,000 last year. She is thinking about giving some of this money to her employees in what is known as plan

Last month, Denise lost two of her best employees. This turnover is for the gym. Denise should consider implementing plan, which is good for dealing with all types of turnover

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Answer:

* If Denise decides to pay above market wages, she will find that she:

Attracts and keeps better employees,

As, Most firms want to employ the most trained employees and keep those employees devoted and productive.

So, To attract and keep their best employees, Wages must correspond to the employee's sense of his worth, based on his efforts, education and experience. Thorough market analysis and a comprehensive wages and benefits package can stance your company to attract and retain quality employees. When Companies provide a “package” that includes compensation (money), incentives (special bonuses or rewards for promising work), and privileges (beneficial options such as health insurance and paid vacation).

* After expenses, Denise cleared $500,000 last year. She is thinking about giving some of this money to her employees in what is known as Profit Sharing plan.

In a profit-sharing plan, an employee attains a proportion of a firm’s profits, either in cash or corporation stock, based on the company’s quarterly or annual earnings (and the amount is inferred by the employer).

It is an incredible strategy for owners to share business profits with the rest of the company and compensate them in a tax-friendly way — both employers and employees benefit from this strategy.

The objective is to reward employees for their assistance to the business’ accomplishment and align their financial well-being with that of the business.

* Last month, Denise lost two of her best employees. This dysfunctional turnover is bad for the gym. Denise should consider implementing a commission/ pay for performance plan, which is good for dealing with all types of turnovers.

Dysfunctional turnover: happens when an outstanding performing member of the company quits.

It is bad for the gym because , Dysfunctional turnover negatively impacts the business by taking away top performer employees.

Pay-for-performance plans are a method of compensation where employees are paid based on productivity, as opposed to hours spent on the job or at a set salary.

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)