Introduction
Employees are the most valuable asset of every business organisation that the management must ensure motivated and have positive attitudes towards their work. The organisation should, therefore, take every step that can make the employees feel motivated and a positive feeling towards the organisation and their work. To change the behaviour of workers, it is essential to reward workers according to their effort and qualification. The employees who have a high level of sales performance should receive sales commission and bonuses as part of their incentives (Bort, 2017). This would make them feel that the company recognises their effort and appreciate what they have done for the company. Necessarily, the company need to offer both financial and non-financial reward as a form of compensation to feet that they are considered part of the company valuable assets. Hewlett Packard Enterprise Company has made several improvements that could change the employee's behaviour. It is a company formed under the company's law. It was incorporated in 2015 to provide technology solutions. The company faces some challenges that could not inspire workers but make them have a negative feeling about the company. The solution to these challenges is a great milestone that would make the employees change their behaviour.
Challenges of Hewlett Packard Enterprise Company
The company has not taken its employees as a significant asset, and therefore it has not been providing equal opportunity to its workforce of all races and ethnicity to compete for well-paying professional positions. Also, the company has been frustrating its salespeople with the issue of pay. These are serious problems that demoralised their workers and even changed their attitudes towards work (Bort, 2017). The internal software responsible for tracking the sales level of each sales agent and their commission has not been working correctly and this has led to poor calculations of sales commission of every sales agent. The MyComp is unable to record correct sales data that are being used in computing sales commission because its upstream data flows were prolonged and there was a disconnection between orders and customer account names. As a result, the sales agents could not know their actual sales performance. The resultant challenge led to low employee retention which leads to loss of essential talents to other organisations.
Improvement that could be made that Involves changing Employees Behavior
It is essential for Hewlett Packard Enterprise Company to take a bold step in ensuring that it rewards its employees well. It should provide both financial and non- monetary rewards to its employees. The company need to offer a flexible work environment and also offer other awards such as commission and bonuses to workers to motivate them towards their work. For sales representatives, the company must incorporate a new system that can track the sales performance of each sales agent and their commissions to allow for correct calculation of their pay. This will ensure that salespeople get excellent compensation based on their effort and basic pay. The sales agents should also receive bonuses based on their sales performance with the main aim of increasing attitudes of workers to words their work.
Hewlett Packard Enterprise Company should also ensure that it offers non-financial rewards to its workers. Although the company provides cash payment, it should also incorporate non-cash payments to motivate the workers (U.S. Department of Labor, 2017). It must ensure that they offer equal opportunities to all workers without considering their race and ethnicity. Hewlett Packard Enterprise Company needs to recruit workers based on their experience, qualification and performance but not based on their ethnicity or race. At the same time, it should establish an annual trip for workers who have to achieve the sales target. This would inspire workers to work harder to part of the team attending a yearly trip. This kind of incentives does not only motivate the workers but also help workers build camaraderie and teamwork among the employees. Also, the company must also offer training in the form of coaching and empower workers as a way of improving the retention ability of the company. These kinds of efforts ensure that all the workers have a positive attitude towards the company and would not like to switch to others.
Hewlett Packard Enterprise Company can also use merit increases to provide a reward to workers that perform better than others. The company should ensure that it rewards top performing workers different from other workers. The most substantial salary increment should go to top performers and provide no increase to poor performers. This helps in retaining the best performing workers and encourage poor performers to improve their work.
Modification of the Design of Total Compensation Plan
The entire compensation plan can be modified by ensuring that it is in three main parts which include base pay and other monetary rewards, employee benefits and non-financial rewards. The combination of all these sections will ensure that the employees of Hewlett Packard Enterprise have a total package that does not allow high performing workers to move to other organisations and also to remain motivated for the rest of their life in the organisation (WorldatWork, 2007). Also, it ensures there are internal equity and external competitiveness and creates fairness and make the organisation adhere to labour laws and policies.
Hewlett Packard Enterprise should ensure that it offers base monthly pay, allowances, bonuses and commissions to workers based on their positions. Workers in the senior positions should get higher pay, followed by middle-level places and finally lower level positions. The pay rates need to be assigned depending on the kind of responsibilities and job requirement and skills that someone has.
It is necessary to ensure there is internal equity and this can be incorporated by ensuring that all the workers are paid by their work experience, tasks and performance. This is because in the organisation all the workers should know that they are paid relatively as compared to other workers (WorldatWork, 2007). To achieve this, the company must review its job analysis and job description, check the responsibilities, experiences, qualification, and working conditions.
Furthermore, the company must also include another form of compensation to the compensation plan. It must have bonuses such as signing bonuses which are provided upon accepting the job offer, and the company should use it when offering jobs to workers who are very important to the organisation (Fox & Donohue, 2008). Furthermore, the company must also provide retention bonuses for employees who have worked for a given period. Usually, the company can design this incentive to critical positions to retain them for long in the organisation. Within the compensation plan, the company must also offer performance-based bonuses and commission based on the sales target.
Other employee benefits must also be included in the compensation plan. The company must be ready to provide health benefits, dental coverage and free meals to motivate the workers (WorldatWork, 2007). Vacation, maternity leaves and statutory holidays must also be considered as part of the compensation plan. Non-financial benefits should also be included in the compensation plan. Such benefits include flexible work environment, participation in social activities such as movie nights, discounted meals and health and wellness allowances. The purpose of these benefits in the compensation plan is to increase the motivation of workers and also prevent them from switching to other organisations. The only negative consequence of this new pay plan is that it requires a more substantial budget which increases the operating cost of the company.
Conclusion
Compensation is one of the best ways in which the organisation can change the behaviour of its workers. It is an essential incentive which motivates and also ensure that workers have a positive attitude towards their work. For Hewlett Packard Enterprise to increase its performance and motivate its workers, it should incorporate a new compensation structure which has three essential elements such as base pay, financial benefits and non-financial benefits. This pay structure will provide equity and ensure that every employee feels that they are paid fairly and by the law.
References
Bort, J. (2017). Hewlett Packard Enterprise has frustrated its salespeople with issues about their pay ? again. Retrieved from https://www.businessinsider.com/hpe-apologizes-to-salespeople-for-messed-up-compensation-system-2017-5
U.S. Department of Labor. (2017). Retrieved from https://www.dol.gov/newsroom/releases/ofccp/ofccp20160921
WorldatWork. (2007). The WorldatWork Handbook of Compensation, Benefits & Total Rewards: A Comprehensive Guide for HR Professionals. Hoboken, NJ: John Wiley & Sons.
Fox, J. B., & Donohue, J. M. (2008). When Changing from Merit Pay to Variable/Bonus Pay: What Do Employees Want? Performance Improvement Quarterly, 17(4), 5-17. doi:10.1111/j.1937-8327.2004.tb00317.x
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