BUSI 440: T-Mobile Compensation Strategy for Customer Service

This assignment analyzes T-Mobile's compensation strategy for customer service representatives, focusing on the five dimensions: alignment, objectives, competitiveness, employee considerations, and management. The paper highlights T-Mobile's approach to aligning pay scales, setting objectives to attract and retain skilled employees, and maintaining competitiveness within the industry. It discusses how T-Mobile considers employee needs and the role of management in determining compensation structures. The company's strategy is seen to align with a customer-centered and innovation-focused business model, emphasizing the importance of customer service and employee performance. The analysis includes a Scripture reference and a scholarly source from within the last 10 years, both formatted in current APA style, as required by the assignment brief.

Running head: COMPENSATION MANAGEMENT
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Compensation Management
Name:
Institution:
Date:

COMPENSATION MANAGEMENT
Introduction
Many organizations use the compensation strategies to determine how they manage
and view the benefits and pay of their employees. I am working for T-Mobile USA and the
company has a very elaborate pay and compensation strategy. The specific position on focus
in this strategy is the customer service representative. T-Mobile is a U.S based
telecommunication giant operating in different parts of the world has a very fair
compensation strategy based on the dimensions of; alignment, objectives, competitiveness,
management and competitiveness (Bushman, Dai, & Zhang, 2015)..
Competitiveness
T-Mobile bases its compensation on competitiveness within the industry. As one
of the best companies in the world, it employs based on an employee’s competitiveness. It
also pays based on competitiveness within the industry. The company compensates based on
the demand of the industry professionals. There are many customer service representative
looking for a lucrative position in the Telco giant. Although the compensation is higher than
in the industry peers, a customer service representative is one of the lowest position in the
industry. They are paid less than engineers and other professionals in the company. There is
also competition to keep high performing employees and valuable employees in the
department and T-Mobile uses a strategic reward performance system to retain its top
employees in the customer service position (Noe, et al,2017).
Alignment
Alignment is one of the general adjustments that applies to the entire pay and
salary structure. It is applicable not only to the customer service representative position but to
all employees. The salary range is based on the position one is operating in. in the customer
service department of T-Mobile for example, there are levels and the manager of the

COMPENSATION MANAGEMENT
department is the highest paid. The salary in the alignment structure is not based on service or
performance in a position.
Objectives
The main purpose and objectives of compensations in this company is to attract
and retain the high skilled employees. The organization has to increase the commitment and
motivation of customer service representatives in order to retain their services in the
organization. Compensation includes bonuses, salaries, wages, allowances and other benefits.
Employee consideration
In today’s compensation strategies, companies are moving beyond the
commoditized marketplace. Charging a small check to their employees for services done.
Today’s employees are providing tools and expertise. It is important that a company like T-
Mobile understand the importance of their needs and find the appropriate tools, services and
partners to meet their goals in business. Consideration factors in all aspects of skills and
expertise based compensation (Schmid, & Wurster, 2016).
Management
The management is the upper cuddle of the organization. it should be noted that
T-Mobile pays the best to its managers and especially departmental managers. The ability to
get the best management structures to manage the human resource capacity is essential in
compensation. The customer service department also has structures that help in determining
the compensation (Steinbach, et al,2017).
Conclusion

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The business strategy used in T-Mobile compensation fits the customer
relationship aspect and the innovation strategy. The better a person is at customer service and
innovation, the better his or her compensation package.

COMPENSATION MANAGEMENT
References
Bushman, R. M., Dai, Z., & Zhang, W. (2015). Management team incentive: Dispersion and
firm performance. The Accounting Review, 91(1), 21-45.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Schmid, S., & Wurster, D. J. (2016). Are international top executives paid more? Empirical
evidence on fixed and variable compensation in management boards of German
MNCs. European Journal of International Management, 10(1), 25-53.
Steinbach, A. L., Holcomb, T. R., Holmes Jr, R. M., Devers, C. E., & Cannella Jr, A. A.
(2017). Top management team incentive heterogeneity, strategic investment
behavior, and performance: A contingency theory of incentive
alignment. Strategic Management Journal, 38(8), 1701-1720.