It is vital that FastCat employees understand how merit pay works. Ensuring they are educated about the pay system will give them a clear understanding of how each person is paid and will show them that each employee has the same potential to move up the pay scale by attaining more education, increasing their skill level, being accountable and having good communication with customers. During employee orientation, new hires will be provided both verbal and written education with regard to merit pay. They will be given an opportunity to ask questions to make certain they understand how it works. The merit pay will be discussed with each employee during their yearly review so they know where they stand and give them a …show more content…
Balanced Scorecard Bonus Plan
The balanced scorecard approach will help FastCat to understand what contributes value in the organization. The balanced scorecard acknowledges that bottom line success depends on satisfied customers buying products and services from effective and satisfied employees, who both serve the customers and produce goods or deliver services in the most operationally efficient way possible. Measurements used to create a balanced scorecard include; customer satisfaction, employee internal growth and commitment, operational efficiency in internal processes, and financial measures. FastCat placed the highest weight on key factors that are vital in achieving FastCat’s objectives, strategic plans, and organizational success.
Key factors for FastCat employees: * Innovation- 25% * Customers see FastCat representatives as responsive and knowledgeable-10% * Customers value FastCat solutions-10% * Employees take pride in working for FastCat-10% * Employees have the tools and support to do their jobs- 15% * Employees understand how to make teams successful- 10%
Key factors that are essential to the company in order to provide bonuses: * Revenue Growth- 10% * Labor Costs- 10%
Explanation of weight
* FastCat places high emphasis on innovation. Customers are used to products that continually improve and make their life easier.