Performance Pay Case Study

Provided that Susan’s organization is new and she has clearly indicated “that cost control will be essential to keep the business going long enough to become well known and develop a stable clientele” (Long, 2014, p. 500), assuming this statement is true, I argue that base pay should be an important component of compensation for the sales staff in conjunction with performance pay. As noted by Long, performance pay is most common amongst sales related jobs such as realtors, cars salesmen and those who sell other merchandise, including gym equipment, as is the case at Fit Stop. So why would I not recommend performance pay as the most suitable means of compensation for Susan’s organization? In conjunction with the fact that cost control is

Why should the physiotherapist or kinesiologist get a cut of “my” hard earned sales? Why should someone who makes half the effort get rewarded for something I worked harder to achieve etc. The answer is simple. As stated in the case, the majority of the sales staff at Fit Stop will consist primarily of people with merely a high school diploma or perhaps a diploma of some sort not related to the industry. Therefore Susan has implemented a strategy that requires the physiotherapist and kinesiologist at each location to train other employees in how each type of equipment can be used for various conditioning and rehabilitation purposes. As time goes on, each sales person will be expected to learn in depth about all the different pieces of equipment in order to help customers diagnose their needs accurately, and to be able to explain proper use of the equipment (Long, 2014, p. 500), all of which will be knowledge attained from the physiotherapist and kinesiologist. Therefore, the success of the sales staff is almost completely dependant on the knowledge and education provided to them by the those with either a degree in kinesiology, physiotherapy or a combination of both, and thus, the monetary benefits gained from a sale or client should be allocated equally amongst the entire team as each persons success is

This is ware it is paramount for management to develop viable means of measurement to monitor and track an employees contributions in efforts recognize if they are eligible to receive part of the group performance-based pay. Notably in the Fit Stop case it states, all members of the organization will be full time staff. This is a challenge in that it is much more difficult to fire or penalize someone who is not performing at par or meeting the expectation outlined by the organization. Full time staff is legally entitled to certain rights and are protected by the labor board. Further the employer must legally prove their efforts to accommodate and aid an employee that may be suffering from any form of addiction or illness that may be impeding their ability to perform at work, prior to letting them go. Only at this time, if the organization can prove beyond reasonable doubt that the employee’s lack of effort is not related to any form of mental or physical illness, should they be removed from or not included in the group-based performance pay. In order to protect the employer, the following standards of what is considered