Recommendations to Improve Compensation Program System at EPCOR Company

This article provides recommendations to improve the compensation program system at EPCOR Company. The suggestions include establishing a payment structure and incentive system, setting SMART goals, modifying salaries based on geographic location, rewarding metric increases to the best performers, and introducing non-financial rewards. The article cites relevant research to support the recommendations.

Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Name of Student
Name of University
Author’s Note

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f. Some recommendations to the executive of EPCOR Company in order to
improve their compensation program system are as follows
Compensation program system is a process which systematically approaches to provide
monetary value to the employees of a company. This particular company requires some
recommendations on improving their compensation program system. The steps are as follows
 Payment structure of employees and incentives: The salary of a particular
employee compensates him for performing the tasks they are provided and also
provides them with a consistent income (Truxillo, Cadiz & Hammer, 2015). The
incentive structure of the company would help the employee to motivate himself
to meet as well as exceed their goals and would give them the opportunity to
increase the amount of money they earn. A stable salary should be decided by the
company, this would help them to attract employees who are ready to work for
the organization. Incentives structure should also be planned by the organization
which would help them to gain the loyalty of the employees. Hence it is
recommended that the payment structure should be set and an incentive structure
should also be introduced, this would help the employees to get motivated and
give their best.
 SMART goals should be established: SMART goals can be defines as Specific,
Measurable, Ambitious, Realistic and Time bound goals. The company should
establish certain monthly as well as annual revenue goals. The goals should be
established such that they are clear for each and every organization (Webster,
Beets & Weaver, 2015). The employees belonging to different departments

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should have their own goals, these goals differ from department to department,
these goals are planned in order to improve the performance of that particular
department and employees working for it. The organization should also have a
common goal, this would be common for every employee and it aims in
improving the overall performance of the organization (Truxillo, Cadiz &
Hammer, 2015). For example the goals of the finance team would be to calculate
the amount of outstanding revenue is collected against certain targets and the aim
of the organization is to increase the annual revenue of the organization and
become one of the famous companies. It is recommended that SMART goals
should be introduced this would avoid confusions among employees between
personal goals and organizational goals.
 Salary modification based on the geographic location of the employees: The
salary portion of employees should be adjusted based on the location of their job.
The local cost of living of the location should be considered and the salary should
be set accordingly (Webster, Beets & Weaver, 2015). This would not affect the
incentives structure. Hence, salaries should be modified based on the geographic
location of employees in order to improve the level of job satisfaction among
employees.
 Metric increases should be rewarded to the best performers: usually
companies provide almost same metrics to all the employees in order to impress
them. This should be changed, the loyal and better performing employees should
be provided with more metrics (Bertram, Blasé & Fixsen, 2015). The star
employees who perform the best should be motivated and retained, motivating

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and retaining the satisfactory employees should be the second priority of the
organization. This means that the star employees should be provided with the
most appraisal and then modest appraisal should be provided to the modest
employees. Increase in metric of the loyal and hardworking employees would
help them to dedicate themselves more to attain the organizational goals and make
it efficient.
 No financial rewards: Employees definitely get motivated with monetary
rewards but non financial rewards are equally motivating (Ingram, LaForge &
Williams, 2015). For example, awarding employees with certificates, medals or
different materialistic stuffs for performing their best and being loyal to the
organization all adds up to motivating strategy of the company. Non- financial
rewards motivates the employees to work harder, hence they should be introduced
in the company.

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References
Bertram, R. M., Blase, K. A., & Fixsen, D. L. (2015). Improving programs and outcomes:
Implementation frameworks and organization change. Research on Social Work Practice,
25(4), 477-487.
Ingram, T. N., LaForge, R. W., Williams, M. R., & Schwepker Jr, C. H. (2015). Sales
management: Analysis and decision making. Routledge.
Truxillo, D. M., Cadiz, D. M., & Hammer, L. B. (2015). Supporting the aging workforce: A
review and recommendations for workplace intervention research. Annu. Rev. Organ.
Psychol. Organ. Behav., 2(1), 351-381.
Webster, C. A., Beets, M., Weaver, R. G., Vazou, S., & Russ, L. (2015). Rethinking
recommendations for implementing comprehensive school physical activity programs: A
partnership model. Quest, 67(2), 185-202.