Ruffian Stores Case Study

1. Does Ruffian need to revamp it compensation/reward strategy? What are the ramifications of not doing so?
Yes, Ruffian needs to seriously take a look at their compensation/ reward strategy for many reasons, such as employee satisfaction as well as overall productivity of their store locations. It’s obvious that their current strategies are not accomplishing what they planned. This is apparent in the Kelowna store location. Sales are inconsistent at this location, sometimes meeting goals but most of the time falling well below expected, as well as the inability to keep a well-trained and dedicated work staff. They are short-staffed and the current part time employees are not being trained properly. The main reason for this is due to the …show more content…
What changes to do you recommend for the pay mix for store managers? Consider the base, bonus and non cash components Currently at Ruffian stores, their compensation packages consist of either an hourly wage or a salary and commission on the sales that are made. The problem currently is that the commissions the employees are relying on are not working out the way they were expecting because sales in their stores are down due to a lack of employment, which leads to inadequate training of the employees to make those sales. Additions to the pay mix are necessary for Ruffian to better perform. As stated before, they employees base hourly wage or salary should be even if not greater to the market average. This is especially the case for the well qualified store managers. There is nothing keeping them at a job where they are not being compensated adequately. Once this step is completed, it shows that Ruffian cares for their employees and wants to see them be successful. The idea of sales commissions are good for employees because they constantly have something that they can work towards rather than their base pay. However, when times are down, not hitting sales quotas can be very demoralizing. Upper management should set goals that fluctuate with the expected sales from previous years. That way, employees are not shooting for something that is difficult to