Monetary and Non-Monetary Compensation
Abode Clothing is a small business in the beginning stages of what may be one of the most successful retail stores ever. In that the company is rather small there are not many outstanding was to compensate employees other than their base pay and commission. Employee's base pay is determined by the utilization of the compilation of average salaries and market data, inflation indicators, and cost of living indicators. Employees are also paid commission for the number of sales made each day. (HR-Guide, 2000).
This particular retail store is a major representation of family orientation, because it is family owned and operated. Therefore, the ability to decide ways to compensate employees other than monetary becomes easier because of the interpersonal relationships. Employees will be given a fifty percent discount on any merchandise purchased at the store. Individuals aspiring to attain a degree will be reimbursed up to seventy five percent for a "C" or better for courses that relate to business. The allowance of discounts and tuition reimbursement among deserving employees has reserved a positive work environment.
Abode Clothing assess its internal equity through design. This business was designed with all parties considered from the CEO to the workers on the floor interacting with the customers. We also have proficient designers insuring the latest styles for man, women, and children. The implementation of new outstanding ideas is welcomed to indemnify quality customer service. Training and communication is required to demote communication breakdown amongst the staff. Design, implementation, training, and communication are key components in the assessment of internal equity.
There are not many family owned and operated retail stores in competition with Abode Clothing. Although there are many other competitors such as Macy's, Foley's, and Dillard's, the chances of losing employees to more established retail stores are thin. Businesses that are family oriented such as abode usually do not lose employees to competitors because the success of their company is so important.
What are some of the internal and external factors that influence the pay structure in the retail business? In the retail business today there is much competition with more and more discount stores opening daily. One thing that would influence the pay structure at Abode Clothing would be, by this being a family owned business we would have to put a lot of time and money into the business.
Some of the internal factors that will influence the pay structure would be merit, individual, and group incentive pay for performance plans. We would classify them in a matrix formed by two major dimensions of plan design....