Case Study Analysis: Employee Compensation, Training, and Startups

This case study analysis examines two scenarios: the first focuses on employee compensation, specifically the debate on fixed versus variable pay for startups, and the design of an effective compensation system that aligns employee contributions with rewards. The second case explores the training needs of migrant workers in Beijing, identifying and prioritizing these needs to facilitate their urban survival. The analysis includes a practical, feasible, and comprehensive set of training programs for the migrant workers, considering content, schedules, budgetary constraints, and funding strategies. The document provides detailed answers and justifications for each question, offering insights into compensation models, training program development, and the challenges faced by migrant workers in urban environments.

Case analysis

Table of Contents
MAIN BODY.............................................................................................................................3
Case study1................................................................................................................................3
Question 1..............................................................................................................................3
Question 2..............................................................................................................................4
Case Study 2...............................................................................................................................5
Question 1..............................................................................................................................5
Question 2..............................................................................................................................6
REFERENCES...........................................................................................................................8

MAIN BODY
Case study1
Question 1
Critically evaluate this statement: “Start-ups should not have an employee
compensation system in which the variable pay component is larger than the fixed
component.” Be specific and justify your answers.
Answer:
Employee compensation system is consisting of different kind of factors which
include variable pay component and fixed pay components. In relation to starters it is
important to follow the fixed components rather than variable pay components for an
entrepreneur. This is because it is helpful in achieving the goals and objectives of the
organisation related to the employee motivation (Marcum and Adams, 2017). It is seen that in
current times, number of start-ups are following to pay more variable pay components in a
compensation system of an employee then fixed component. Due to this employee has to
work more to achieve different kind of incentives as well as higher pay. But this is only
possible at the time of good business. But at the time of down fall within the market
employees are not able to generate the variable pay components as much as higher and
because of low fixed component they have to face various kinds of salary issues. This will
lead in the satisfaction of the employees as well as also motivate them towards the working in
unfavourable situations. In start-ups the most use variable pay components are sales
commission structure bonus and commission as well as different kind of other factors which
are used to include in the variable pay of individuals which an individual can gain at the time
of pick situation in the business. Fixed component include different kind of systems within
the salary of an individual where the three main fix component of a fixed salary are basic
salary, dearness allowance and house rent allowance. These three are the major component
within the fixed component of a salary and compensation system within an organisation.
Organisation should use a system where the variable components are low in comparison to
fix component so that it can engage the employees within the working of an organisation by
influencing their behaviour because of higher pay (Johnson, Friend and Agrawal, 2016).
There are various benefits which can be availed by the organisation by using fixed salary
component. The first benefit is that it can easily attract the employees within the organisation
because with the help of higher salary organisation can directly attract the talented person
towards the job within the market. Start-ups always need talented person on their jobs

because they perform different kind of activities which are related to management of talent as
well as using innovative ideas within the organisation. For using the innovative idea it is
important for a start-up to employ a talented person. This can be easily done with the help of
attractive salary where they can provide higher fixed components in comparison to variable
pay components. This is helpful to the organisation in achieving its objectives as well as
attracting the talented employee and fulfilling their requirement related to their salary. For
this start-ups has to design a proper compensation system which includes different kind of
activities where fixed pay is higher.
Question 2
Design a compensation system for a start up in such a way that its employees can see the
link between their contributions to the start up’s success and the rewards they receive
in return. Be specific and justify your answers.
Answer:
Compensation system for start-ups
It is essential for a start-ups to formulate a proper strategy related to compensation of
each and every individual who is working within the organisation so that the talent within the
organisation can be maintained for longer period of time as well as motivation and
cooperation can be established within the mind of individuals were working within the firm
(Chang, Liu and Cheng, 2018). There is a proper plan which can be used by a start-ups for
compensating its in employees which is mentioned below:
Basic salary: the first step in the compensation management of employee is related to
the basic salary. Basic salary is important part of compensation management individual
which include the amount which organisation will it pay in return of the work done by the
individual on a specific job. In Relation to start-ups, organisation has to use proper amount
for salary and basic pay for an individual where for a fresher it will be 250 dollars and for
experience person it will be 750 dollars. it is adequate amount which has to be included in
basic pain where DA of $50 and HRA $50 will also be provided to the individual in addition
to the basic page. The compensation between to $250 to $750 is adequate for individual who
is going to work with the start-ups.

Travelling allowance: organisation that it will provide travelling allowance to the
individual who are coming from different areas which are more than 5 kilometre reach of the
office. For metro city the allowance will be of $50 and for non-metro city it will be $40.
Voluntary: organisation should also provide the facility of voluntary work to the
individual who will help them in motivation as well as fulfilling their requirements other than
the basic pay and allowances which are allowed by the organisation to different individuals.
Voluntary work will include the amount of the work which is done by an individual other
than its regular work on a particular job which also includes the overtime and other
commission based system (Chen, Chen and Wei, 2019). Organisation is based on sending of
a particular product that organisation can also use commission instead of voluntary work. The
amount of commission will be 2% of the total sale. it will be increased to the sale is beyond
the expected level and the commissioner about will be 5% of the total sale. This will motivate
the employee to work within the organisation and sell more and more products for earning
more money. Organisation should also ensure that the basic pay amount is greater than the
variable pay amount so that at the time of low markets or decrease in sale the employees can
get satisfaction through their basic pay. For voluntary organisations in use different kind of
techniques it can provide a commission based system with each and every individual will get
a voluntary work according to their requirement and will fulfil certain terms and conditions
where they will get reward according to their salary and the work done by them.
Performance reward: it is important for every start-up to pay the individuals
according to their performance. For the performance rewards organisation will not use the
basic pay for increments within the basic pay as a payment of performance. Rather than
organisation use incentives as well as extra money are the basic pay where organisation can
increase the performance and also arrange some separate facilities like if employer perform
more than expected then it will be rewarded with appraisal as well as some monetary
incentives. This will increase the motivation of individual and will also motivate other person
to perform at fuller efficiency and increase their performance for achieving these motivating
factors. Organisation can also provide a prestige and recognise their contribution toward the
organisation after a great performance within a year by launching various kinds of events as
well as organising different conferences and rewarding these employees in conferences but
through fees or other rewarding item (Jia, Jia and Sun, 2018).

It is the structure which can be followed by start-ups to motivate the employee as well
as manage their compensation within an organisation where they can satisfy their needs and
requirements as well as work with the organisation for a longer period of time.
Case Study 2
Question 1
Identify, categorize, and prioritize the training needs facing the migrant workers in
Beijing who have left their home in the countryside in search of a better life. Be specific
and justify your answers.
Answer:
The migrant worker in Beijing are facing various kind of issues related to the training
needs which are important to be address. The basic issues and needs which are facing by the
migrant workers to the training are discuss below:
To earn livelihood: the basic requirement of training to the migrant worker is to earn
a better livelihood so that they can survive within the environment as well as fulfil their basic
requirement related to food shelter and cloth (Galport and Azzam, 2017).
To get education: one more need of training and development within the migrant
workers of Beijing who left their homes in the countryside for search of better life is directly
related to education. They are not educated so much so that they can operate the computer
systems as well as handle eco-friendly techniques but by the help of training from this NGO
they can favourable to different things within the environment related to computer operation
as eco-friendly technique.
Standard of living: also seen from the case study that the standard of living of this
migrant worker is so low that they can afford adequate food for their family as well as
themselves. Help of this training they can easily increase their standard of living while
working within some better organisations. They can also form old self-help groups which will
help them in producing the products which are eco-friendly as well as achieving a separate
identity within the market (Crompton, Olszewski and Bielefeldt, 2016).
According to the requirement the most prioritize need of these migrant worker is to
earn the livelihood so that they can survive within the environment as well as fulfil the
requirement of their family by providing them in basic needs related to food shelter and
clothing.

Question 2
Develop a practical, feasible, and comprehensive set of training programs to help
Workers’ College equip the migrant workers in Beijing with the necessary skills for
urban survival with due considerations for training contents and schedules, budgetary
constraints, and funding strategy.
Answer:
It is important to develop proper strategy related to training program show that worker
can acquire different kind of skills and ability to perform different jobs as well as improve
their conditions by fulfilling their needs and requirements for survival within the urban areas.
Different things related to schedule budgetary concept and funding strategy are discussed
below:
Schedule
It is mandatory to follow proper schedule for the training program so that each and
every aspect of an individual can be trained for achieving the goals and objectives related to
the migrant workers. Different steps which are mentioned below which has to be followed by
the organisation for developing and providing training to migrant workers.
 Identification of skills, abilities and qualities of different individuals
 Development of different programs
 List each and every individual in different programs so that they can form according
to their skills, ability and quality.
 Following the procedures related to development of different skills in migrant
workers.
Budgetary constraints
It is also important to identify the budget so that the plan can be implemented
effectively where each and every aspect related to activities performed for the training
programme of migrant worker will be identified. Each stage within the program requires a
separate amount of budget which has to be identified by the researcher while formulating the
strategy. Current training program for the migrant workers of Beijing, Overall expenditure is
expected to $10,000 50 aspirants in a single batch (Oyetoyan, Cruzes and Jaatun, 2016). The
overall expenditure on a single person is expected to $500 which include their food shelter

training as well as development of skills and abilities related to performance within the urban
areas for earning their livelihood and increasing their standard of living.
Sources of funding
There are different sources of funding which can be used by the organisation to
increase the contribution of migrant workers in urban areas as well as help them to get
training and development programs so that they can earn their livelihood as well as increase
the standard of living while performing on different jobs within the urban areas. In Current
training program organisation will use two kinds of sources for funding the overall training
program. The first source which is used by the organisation to fund the training program is
that organisation will employ these migrant workers in some near organisations where they
can earn 50% of the total amount expended by the organisation on the training and
development of these workers. the second source of fund which is used by the organisation is
raising the fund through government and support of other non-government organisations who
are willing to contribute towards the development of economy by improving the contribution
of workers. This can be done through making the unskilled worker a skilled labour that can
perform different tasks as well as fully trained to work in different industry. These are the
two sources which will be used by the organisation to finance the training program.

REFERENCES
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