Analysis of the Current State of Pay System of Sprint Company

Paper Type:  Essay
Pages:  4
Wordcount:  1018 Words
Date:  2022-11-09

The pay structure of Sprint Company, involves a good salary package and competitive bonuses for its employees to encourage them to improve on their work output. Newly employed staffs are paid a salary range of between 20,000 to 60,000 dollars for those in junior positions and those in senior positions are paid between 40,000 and 150,000 dollars. Besides good salary package the employees also have numerous benefits such as free six medical plans like life insurance, two dental plans. However, the execution of imbursement system is faced by many challenges in any institution in as much as it aims for fair compensation. The compensation system comes as a package for the employees which include; health care benefits, salary bonuses. The compensation plan should motivate the employees and be able to attract the best people for the job hence, creating healthy competition. It should also improve the morale of the employees and ensure their satisfaction.

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Pay-for-Performance is creativity that is intended at enlightening the worth, effectiveness, and significance of all services with any given institution. The Pay-for-Performance Model is used to provide financial rewards for employees who meet or exceed performance standards. Pay systems can, therefore, be used to reward individuals or team performance as a way of encouraging the employees. It also increases the loyalty of the employees and expands customer services (Serak & Wang, 2015). The Human Resource Managers should ensure that there is balanced development of compensation packages by the creation of financial budgets- the choice of a compensation policy that suits the company and evaluation of job systems. After the job evaluation systems, the pay systems are then adopted about the pay grades to ensure fairness.

In the case of Pay-for-Performance for individual and group incentives, there are some factors that help determine the incentive program. For example, an individual incentive plan is used to award individuals for achieving specific performance goals, for instance, a bonus for completing a certain production level (Britz, Ebrahimi & Gersbach, 2018). On the other hand, the group incentives are issued to a team who have jointly accomplished a common goal, for example, reduction of expenses. These pay systems help to foster an atmosphere of teamwork and cooperation in the organization. It motivates individuals to be goal-oriented employees. There should be discrete disclosure in terms of incentive being offered to the employees to maintain fair standards.

Pay for performance can be used for evaluating performance appraisals through determining the merit in which the rewards are awarded. It is used to explore each employee's job growth and setting goals that need to be achieved in the future. They can target an area of weakness that needs evaluation; hence, serves as a useful tool for job promotions. Again, the performance appraisal is determined for both group and individual incentive plans such as piece rates. The policies create an ideal condition for setting the goal theories that encourage workforces to increase their performance, targeting needs that need to be addressed and building strong relationships. Some of these conditions include; structured jobs with independent employees, defined performance goals, strong management team and a secure economic environment (Lawler, Benson & McDermott, 2012). A merit plan such as individual performance measures create fairness in the organization, attract new employees and strengthens the employees. Performance appraisal can be achieved through an assessment of performance in terms of personal contribution and percentage of team-related factors.

Pay for performance is however regulated by a policy that is known to be achieved on legal grounds. Legally mandated benefits can be waived in that they are not mandatory for the employees. For example, an employee can choose not to benefit from health insurance, life insurance, and the coverage is waived for a given period. However, employees are not entitled to salary increases unless if they have a contract with the employee stating the same. There are pay for performance benefits that are mandatory such as, insurance benefits for ill and injured employees at work, compensation for workforces who drop their work for no mistake, social security taxes and family and medical leave. The benefit of this can be termed as intangible hence very essential for ensuring the well-being of the employees.

The determination process of achieving the most favourable pay for performance can be challenging. However, through the development of performance goals, the employee can determine results and outcomes. Development of job knowledge and skills, transparency among employees, resilience, strategic goals and vision and well-laid plans. The determination process is essential because it helps to distinguish the long-term schemes from the short-term projects. The short-term plans are designed to encourage retention, create value for shareholders and recognizing the unique needs of the organization. Therefore, reasonable incentives should be offered for short-term schemes while the long-term schemes earning higher incentives (McKeeby & Nunley, 2009).

Again, the benefit of the determination process is to distinguish the level of competence among the employees through interlinking their salaries and their incentives as well as those jobs that require special needs. Payrolls are therefore very essential in an institution because they give a structured breakdown of the payment process and the merit plans. For instance, on issues regarding gain sharing such as profits for teams, the determination process for achieving a fair pay system is beneficial for all the participants.


A compensation system is a plan and a tool used by the Department of Human Resources to ensure that employees are motivated towards achieving the goals set for the organization. It organizes the work environment by setting a transparent system that details ideologies for defining the reimbursement for the numerous work performers. However, the execution of imbursement system is faced by many challenges in any institution in as much as it aims for fair compensation.


Britz, V., Ebrahimi, A., & Gersbach, H. (2018). Incentive Pay for Policy-makers?. SSRN Electronic Journal. doi: 10.2139/ssrn.3304727

Lawler, E., Benson, G., & McDermott, M. (2012). What Makes Performance Appraisals Effective?. Compensation & Benefits Review, 44(4), 191-200. doi: 10.1177/0886368712462331

McKeeby, C., & Nunley, R. (2009). Employee Benefits: The Age of Accountability. Compensation & Benefits Review, 41(5), 60-65. doi: 10.1177/0886368709337921

Serak, J., & Wang, M. (2015). The Performance of Pay-for-Performance Policies. World Neurosurgery, 83(4), 401-402. doi: 10.1016/j.wneu.2015.01.009

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Analysis of the Current State of Pay System of Sprint Company. (2022, Nov 09). Retrieved from

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