Essay on Analysis Of Harrah 's Threats And Regulatory Pressures

1322 Words Aug 3rd, 2014 6 Pages
Threats Harrah’s threats include regulatory pressures that can lead employees away from engaging too intimately with customers. Other threats include competitors’ ability to model bonus structures similarly which could impact the demand for talent and lucrativeness of the program. Finally, the gain sharing program is not tied to profitability so it could ultimately deter profits if program is paying out year over year due to goals being attain through customer service but not revenues. Appropriate Reward System The gain sharing program is an appropriate program for Harrah’s Entertainment; the proper pay-mix and total compensation package foster’s security and commitment; a dedicated work-force and a strategy around retaining talent and customer-focused is best suited with a pay-mix model. Harrah’s targets a base earnings and benefits with a smaller portion of the mix being their gain sharing bonus pay. The industry and strategic model that Harrah’s believes in does not fit the ideal model of a performance driven compensation structure or profits-sharing reward system; therefore, rewarding employees through pure financial performance does not make sense. In Harrah’s business an individual reward system would be close-minded and would not tie to the organizations strategy of an overall and total customer service experience. It’s more appropriate for the organization to have a teamwork-centric reward system due to the employee’s ability to impact their customer base. With…

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