What Changes And How The Wage Structure Do You Recommend For Store Associates?

826 Words Feb 22nd, 2016 4 Pages
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 below average compensation package that is not attracting any talented and committed employees. If it continues the way that it is, the company will be losing money at this location, possibly having to close it down.

2. What changes to the wage structure do you recommend for store associates? Consider levels, differentials, hierarchy vs. egalitarian, etc. At Ruffian, they say that they are looking for well-qualified employees to run their stores, but their current pay structure does not reflect that. They operate in a somewhat egalitarian pay structure, where the part time employees earn around $10-$12 an hour, while the full-time store managers are making around $20-$25 an hour. There is a difference in pay there, but for the added…

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