Posted: June 5th, 2021
Performance, as well as revenue, is reviewed every 6 months. This way it allows JVA Corp. to cut or increases pay every 6 months and review its bottom line. Employees can also benefit by having the opportunity to earn pay raises potentially twice a year, rather than the typical annual reviews. I t is my firm believe that to achieve the reduction of the percentage of revenue that is allotted to employee’s compensation from 8% to 5% without it having a big demoralizing effect on its employees.
JVA Corp. needs to make strategically costs cuts that allow the corporation to continue offering its employees rewards and pay raises for their good performance. I feel that this is essential to our organizations ability to attract new talent and retain the people whose performance stands out. These changes should not be permanent, but they should stay in place until the organization stabilizes and becomes profitable again. Some compensation packages like paid leisure travel should be complete eliminated for the time being, but not before explaining to employees that this is a necessary step for the corporation to take to be able to stay in business.
I believe that employees much rather lose their paid travel expenses than to lose their jobs. Performance reviews should be conducted once every six months so that employees get feedback from management more often, but they will continue to be eligible for pay raises only once per year. The amount of they pay raise will continue to be determined by performance of the employee, unfortunately to be able to meet our compensation percentage reduction pay raise amounts will be 25% less than in previous years.
Only that employee whose performance goes above and beyond of what it is expected from them will receive the usual compensation (Whit the exception of paid leisure travel). This is in an effort to try to retain talent through these difficult times. I believe that by only reducing the percentage of the raise that employees receive instead of eliminating all raises we still encourage the personnel to try to perform their best and the culture of healthy competition remains in the organization.
Bonuses should continue to be handed out to a lesser percentage of the top employees if it was given to the top 20% employees it should be reduced to only 10% of the top performers. Bonus amounts should stay the same until the tough economic times have past. Amenities that are already offered on the worksite should not be taken away because this will have a direct impact on employees feeling about the company, but no new ones should be added until it is determined that the organization is on track to being profitable again.
Gym memberships should still discounts should continue to be offered because not only does it help employees release stress and stay in shape; it also has the potential to save the company a lot of money on healthcare costs. Phone bill discounts will only be given to managers and people who perform above average about 80% of the workforce will receive a lower discount on their personal phone bill or will be taken away for economic reason.
It is important to let employees know why you are taking this steps, letting them know that it is necessary to take them for the company to stay in business will be of great help when it comes to them being disgruntled. To conclude I believe that by taking all the steps mentioned above JVA Corp. Should have no trouble achieving its reduction of employee’s compensation from 8% to 5%. This reduction should be accomplished without having a significant impact on the operations of the corporation. Employees should recognize that the changes made where necessary to be able to stay in business.
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