This article discusses the compensation analysis of Patagonia, including the workforce summary, compensation analysis, compensation strategy and alignment with business strategy, compensation strategy recommendation, change factors, and compensation strategy placement.
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Running head: COMPENSATION ANALYSIS OF PRATAGONIA COMPENSATION ANALYSIS OF PRATAGONIA Name of Student Name of University Author’s Note
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1COMPENSATION ANALYSIS OF PRATAGONIA 1.EXECUTIVE SUMMARY Patagonia is an American company which deals with the clothing used for the clothing. This company was founded in the year of 1973. This company is based in Ventura which is the part of California. It is founded byYvon Chouinard. The company has started as the small scale company and then it improved to be the one of the best company in the world. The company at present produces clothing as well as the accessories and tools for climbing, snowboarding, fishing, skiing, trail running and also the paddling worldwide. The main focus of the company is to increase the quality of the products. The company also focuses on the factor which prevails during the manufacturing of their products which mayresult in diseases related with the products (patagonia.ca). The company wants to deliver the products which can withstand extreme hardships so that the customer of the product remains in safety. The company has a very unique system of absorbing candidates for the job. The company instead of going in orthodox way likes participating in job fairs and recruits candidates or head hunting they tend to move on to recruit candidates from the informal way of friends or colleagues who are outrageous in nature. As per the survey it can be stated that more than 90% of employees are satisfied with the company and they love their job. The survey also states that the company provides such a good environment that the employees wants to spend the whole working life. As per the target of the customer goes Patagonia mainly target the customers irrespective of their gender and also they need to hail between 18 to 35 years of age. The candidate needs to be have the interest in outdoor activities and also need to be nature lover.
2COMPENSATION ANALYSIS OF PRATAGONIA The candidate need to have tendency to value the high class products and also the candidate need to have interest in saving the environment(patagonia.ca). 2.WORKFORCE SUMMARY Patagonia has huge workforce who supports the company to grow further. As per the company’s analysis it is seen that the company has 22,000 employees. The employees mainly reside mainly from the generation Y. Patagonia has a very complicated structure of recruitment process. The selection of the candidate involves the choosing from the informal ground. The choosing of the employees mainly states the selection of the candidate from the company’s colleagues or friends of the colleagues. The founder of the company wants to create the company as the proactive in nature and also wants the company’s employees to follow the progressive corporate culture. This is the reason the management of the company choose the employees who are mainly young and possess the passion for the outdoor activities(patagonia.ca). The company also provides the opportunities to the employees of the company to work on environmental internships around the world. 3.COMPENSATION ANALYSIS The company has different environment and different compensations analysis regarding the corporate, warehouse, as well as for the employees who fall under the retail department of the company. Accordingly, Patagonia have various rewards system for the different department employees. These are the factors which increase the benefit for the work where they live and work. As per the factory workers are concerned the wages meets the expectations of the employees working in the factory. The amount of wage matters with respect to the area where the warehouse is present. The company also partnered with Fair Trade USA which helps the
3COMPENSATION ANALYSIS OF PRATAGONIA company to develop the program for the safety of the workers in the factory and also sees the wages are being paid in time or not. Patagonia also pays some of the extra money in respect to increase the standard of living and crates a difference between the minimum wage and also the living wage. Patagonia also provide the workers of the company about the paid trip and also provide the product to the workers for the hiking, climbing, skiing or surfing. As per the office staffs and mangers are concerns, Patagonia has changed the compensation and the performance management recently. The company focuses on the pay and also the bonuses which are being paid separately and also company sometimes provide rewards to the employees(Hiebert, 2017). The company also enhances the skills which helps the staff to increase the performance of the company. As per the timing of the company goes, company has introduced new program which is known as 9/80. If any employees work for 9 hours from Monday to Thursday then the employees need not to come in alternative Friday. This also increases the holiday for 26 three day weekend. 4.COMPENSATION STRATEGY AND ALLIGNMENT WITH THE BUSINESS STRATEGY: In terms of the compensation strategy Patagonia hold the title of the one of the best successful companies who helped the employees of the company to grow in case of the culture and also the business strategy. The company rewards its employees in a very unconventional way and also the compensation system is very unorthodox. The compensation is provided to support the employees work life balance. The company moves on with the motive where the employees are seen as the potential customers of the company and also creates the environment in the company which make the employees to feel as the game not work. This rewarding system helps the company to grow the performance of the employees individually and also the
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4COMPENSATION ANALYSIS OF PRATAGONIA productivity of the employees increases. Patagonia has surfing policy which helps the employees of the company to stay fit. The employer of the company wants the employees to feel as the family in the company. The company also pays a considerable amount of money to subsidize the family benefits including the on-site day care to support the employees. Patagonia wants its employees to have proper work life balance. 5.COMPENSATION STRATEGY RECOMMENDATION: There are many ways the compensation part is to be involved. The company has much compensation strategy which can be considered again and changed for the purpose of betterment. They are provided as follows: 1.Job Design: The company needs to improve the job design of the company. This will help the employees of the company to understand the company’s working structure more profoundly. Moreover the company will see the increase in the performance of the employees as when the job design are being reshuffle then the employees will able to analyses the problem and enhance the company’s growth. 2.Coordination and Department It can be seen that the company will improve the quality of the performance of the employees by reshuffling the company’s department and also the employees of the company are also being shuffled(Madhani, 2014). If the interchanging of the employees are being made then the employees will, able to understand the company’s position in different department and also it helps to improve the departments in terms of the performance of the company.
5COMPENSATION ANALYSIS OF PRATAGONIA 3.Decision-making and Leadership The management of the company needs to improve the decision making process which are used for the development of the organization. The management of the company need to take some decision regarding the employees which in turn will increase the chance of the profitability of the company and also increases the sustainability of the company. It will also help the company to have upper hand on the competitor of the company. 4.Communication and information Communication and also the information process is one of the critical factors for the company. As the company need to have clear hierarchical structure so that it is easy for the employees to communicate with the employees and also able to express the problems which may prevail. This will also help the management of the company to improve the situation of the employees and hence the working environment of the company will rise high(Nazir, Shah & Zaman 2014). The performance of the employees will also increase as the employees will feel the environment as home and hence the company wills definite growth in terms of the profitability and also the sustainability of the company. 6.CHANGE FACTORS: There are two types of factors which affects the compensation of the employees depends. These two types of factors include internal factors and external factors. The internal factors on the basis of the compensation policies includes the ability to pay, business strategy, job evaluation and performance appraisal and also the factors which are related with employees. The ability to pay is one of the important factors for the compensation which are presented to employees. The evaluation of the work done by the company is also one of the important factors
6COMPENSATION ANALYSIS OF PRATAGONIA which is developed for the purpose of the compensation for the employees. There are also different factors which affects the company’s compensation system. The experience of the employees also determines the company’s compensation structure. This structure not only increases the compensation system but it also increases the motivation of the employees and overall the growth of the company increases. The potential of the employees of the company sets the company’s compensation system which includes the devotion of th employees in the company’s job. In this regard the compensation system also changes and hence the company’s overall growth increases high. There are some of th external factors as well where it can be seen that the company has alos some serious problem regarding the external factors which includes labor market effects, going rate, productivity of the industry, cost of the living where the office is situated and also the factors which lurks around the labor union of the country. One of the important factor which includes the labor law(Anvari & Chermahini, 2014). This also helps the company to fix the compensation policies and make it accordingly. 7.COMPENSATION STRATEGY PLACEMENT: There are many strategies which loiters around the compensation placement they include the organization culture, business strategy and also the HR strategy(Chen & Jermias 2014). This helps the company to fix the compensation and also it helps the company to adjust the compensation in accordance with the business strategy and also the HR strategy. The thing for the reward must be decided by the company. The experience of the employees and also the potential of the employees are also need to be seen so that it can states the compensation analysis. There are many strategies which are very important for fixing the compensation system of the company. These strategies will not only increases the employee satisfaction but it also make the company to work more.
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8COMPENSATION ANALYSIS OF PRATAGONIA REFERENCE Chen,Y.,&Jermias,J.(2014).Businessstrategy,executivecompensationandfirm performance.Accounting & Finance,54(1), 113-134. nvari, R., JianFu, Z., & Chermahini, S. H. (2014). Effective strategy for solving voluntary turnover problem among employees.Procedia-Social and Behavioral Sciences,129, 186- 190. Nazir, T., Shah, S. F. H., & Zaman, K. (2014).Review of literature on expatriate compensation and its implication for offshore workforce.Iranian Journal of Management Studies,7(2), 203-221. Madhani,P.M.(2014).Aligningcompensationsystemswithorganization culture.Compensation & Benefits Review,46(2), 103-115. Long, R. J. (2018) Compensation Today 2.3. Strategic Compensation in Canada (6th ed.). Toronto, Ontario. Nelson Education Hiebert, Paul. (2017, July 10), A look at the type of person who shops at Patagonia. Retrieved from:https://today.yougov.com/topics/consumer/articles-reports/2017/07/10/the-type-of- person-who-shops-at-patagonia (Patagonia.ca): Retrieved on July 30th, 2019 Byars, Tessa.2016.PATAGONIA CONTINUES TO EXPAND ITS FAIR TRADE PROGRAM. Retrieved from:http://www.patagoniaworks.com/press/2016/10/10/patagonia-continues- to-expand-its-fair-trade-program-for-fall-2016-directly-improving-the-lives-of-factory- workers
9COMPENSATION ANALYSIS OF PRATAGONIA https://www.greatplacetowork.com/certified-company/1000745 https://www.patagonia.ca/static/on/demandware.static/-/Library-Sites-PatagoniaShared/default/ dw08d0f6ed/PDF-US/2018-B-CorpReport-050919.pdf