Essay Example on Compensation Structure of Sprint Company

Paper Type:  Essay
Pages:  4
Wordcount:  921 Words
Date:  2022-12-05

Sprint Corporation is said to be the fourth largest operator for mobile networks in the United States. It is a telecommunications company that proffer internet and wireless services to around 54 million customers in the United States. The pay structure of Sprint Company involves a good salary package and competitive bonuses for its employees so as to encourage them to work harder and also improve their work productivity.

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Compensation is a process, plan and a tool that is used by the Human Resource Department to motivate the employees more effectively so that they can achieve the goals that have been set by the corporation. It organizes the working environment of the company by setting a crystalline system that explains ideologies for defines the competence of the numerous work performance. This plan works effectively because the company is able to achieve most of the goals that it has set.

The compensation system comes as an advantageous package for the employees that motivates their moral in work. The benefits include; health care benefits, salary bonuses, insurance covers, housing benefits, two dental plans, and motivational funds. One of the treatments that Sprint gives to its employees is a good starting salary. (Mura and Vlacsekova, 2018). The newly employed staff are paid a salary range of 20,000 to 60,000 and the senior employees are paid range of 40,000 to 140,000 and due to this, the approves salaries as it is required any time there is a need. Through the pay-performance structure, Sprint company easily facilitates compensation changes among its workers depending on their job title. This happens because the company is able to identify the differences between the performance and contributions of different employees in various departments of the company.

Other benefits that the company provides her employees with include; discounted merchandise is not permitted to take part in the vendors. The employer is allowed up to twelve phones at fifteen dollars per month. However, the employee is the one who is responsible if the phone gets faulty. The company also offers 30 dollars per line. According to the goals of the company, the company offers a small token of 20%, in every and 40% premium in every fourth quarter of the plan. (Jung and Xiong, 2017). The company's employees who have worked in the organization for more than ten years makes 39 dollars and above per day. Sprint company award bonuses to its employees according to how long they have worked for the organization. For instance, the employees who have been serving the company for about five years receive a salary of 55,000 dollars annually and those serving from five years to nine years receives a payment of 57,000 dollars per year (Martin, 2010).

The pay for performance program that is considered to enlighten the worth, effectiveness, and significance of all services in the Sprint company. It also gives financial prizes for the employees who meet or exceed their target performance standards. The pay-performance model enlarges the services of the customer and also increases the loyalty of the workers (Serak and Wang). Hence the Human Resource directors have to ensure that there is equal development of compensation packages by creating financial budgets that suit the company on the choice of compensation policy and evaluating the job structures. If there is a pay for performance for an individual or a group of incentives in the company, a plan is used to grant awards to the person who has acquired the targeted goals. The pay structure also distinguishes the salaries between the new employees and the senior ones, and the different tasks of different employees in the company.

Some of the questionnaire responses from the company's employee's states that Sprint Company determines the compensation of its workers through their job descriptions (Flynn, Mathis and Valentine, 2015). Sprint justifies and ministers its pay grades by evaluating the jobs against the performance of various workers. The skilled employees' salary is justified up to around 83,000 dollars on an annual basis and the licensed lawyers of Sprint Company are compensated with 126,000 dollars due to their engagement in legitimate activities. The advantage of the determination procedure is to determine the level of competence among the employees interconnecting their salaries and their inducement as well as those jobs that require exceptional needs. For example, matters concerning the sharing of profits for teams, the determination process for achieving a fair pay structure is favorable for all of the workers.


Sprint company is a superb example of an organization that uses a good compensation structure. The company integrates various determinants of worker compensation in order to motivate the employee. The dissimilarities of various job levels, performance, and skills. Sprint creates a compensation structure that equals every worker concerning his or her job grade. This also applies to the awarding of bonuses also. A bonus is an additional amount of money that is awarded to employees because of their excellent performance at work. The company organizes the work environment by providing a transparent system that specifies ideologies for explaining the reimbursement for the numerous work performers.


Barney, J. B., & Wright, P. M. (1998). On becoming a strategic partner: The role of human resources in gaining competitive advantage. Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in alliance with the Society of Human Resources Management, 37(1), 31-46.

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

Neu, F. H. (2013). Cutting Costs: Successful Strategies for Improving Productivity

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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