FutureSence Case Study Analysis: Compensation and Reward Strategies

This case study analysis examines FutureSence's sales compensation and total reward strategy, addressing issues such as outdated compensation practices, the absence of a defined variable/fixed compensation structure, and the lack of an incentive program. The analysis explores FutureSence's approach to consulting services, its strategic thinking in designing reward systems, and the three-phased plan it adopted to overcome its challenges. The report analyzes the components of sales compensation, including pay mix, leverage, performance measures, and administration. It recommends updates to compensation practices, the implementation of a clear variable and fixed compensation model, and the design of an incentive program to motivate employees. Furthermore, the study suggests a shift towards group work, reward programs for teamwork, and a reevaluation of the work hierarchy based on sales efforts, ultimately aiming to improve FutureSence's overall compensation strategy to attract, retain, and motivate employees.

Running Head: CASE STUDY ANALYSIS 1
Title: Case Study Analysis
Group:
Group members:
Date- 30th January 2019

CASE STUDY ANALYSIS 2
Introduction or Problem Statement
Introduction
Human Resource Management is a highly indispensable aspect related to business
management, and the company will see an increase in the efficiency and productivity, it can
parallel take its all business strategy, human resource management strategy, and corporate
level strategies (Edirisooriya, 2014). However, there is no single size, which can adjust with
the key to success in the context of prescribing the correct scheme for training people
management. In fact, various organizations design their policies, and even within departments
techniques are differently designed (Chijioke & Chinedu, 2015). Specifically, organizations
can make use of multiple methods for the purpose of monitoring and managing employee’s
performance in various positions and from variant backgrounds. Between the different
techniques to encourage the staff and improve the business competence, incentive systems
and reward are usually applied by business managers for attaining the corporate goals of
increasing organization profits.
In this report, FuturseSence case is discussed, which underlines the sales
compensation and total reward strategy of the company. It’s mentioned in the case that
FutureSence had conducted an evaluation for understanding the effectiveness of sales
compensation as well as total reward strategy, along with competitiveness, to attract, retain
and encourage the employees for the retail client.
Problem Statement
The case discusses the issues faced by FutureSence, which are:
 Compensation practices are not updated from last 20 years
 Variable and fixed compensation is not yet decided
 No incentive program is designed

CASE STUDY ANALYSIS 3
For the client, FutureSence is the desirable option, as it offers different consulting
services. FutureSence is thoughtful, authentic and applies responsive approach. Though
FutureSence is the small boutique company, client contact it as they find FutureSence has the
ability to provide unique services (Sales Compensation & Total Reward Strategy Case Study,
2019).
For fulfilling the client expectation, it is important that it tries to solve its issues.
Background
The role of total reward professionals has become strategic in last few decades. Now
strategic thinking is considered as the most significant skills in distinguishing the highest
performing professionals of total reward as compared to average one (Noe, Hollenbeck,
Gerhart & Wright, 2016). This change depicts the highest acceptance’ therefore, companies
are required to think in a strategic manner, while designing the reward system and
performance management system for optimizing the human capital value. Strategic thinking
implies that efforts and actions are emphasized on practices, which will assist the
organizations in attaining the benefits over their rivals in the long run (Noe, Hollenbeck,
Gerhart & Wright, 2016).
The case discusses FutureSence, which is a management professional and consulting
service firm. According to the case, the company evaluates the effectiveness and
competitiveness of total reward and sales compensation strategy, with an aim to retain, attract
and motivate the staff for their retail client. FutureSence is facing a lot of issues related to
their strategies, and in order to overcome from it, it has plan three phases, which might help
the firm in overcoming its problems (Sales Compensation & Total Reward Strategy Case
Study, 2019). Firstly, FutureSence is focused towards data analysis and discovery, through
which it will analyse client material, like understanding their ongoing programs, conduct an

CASE STUDY ANALYSIS 4
interview with essential stakeholders, assessing critical business issues, and perform an onsite
visit to get engage with staff (Sales Compensation & Total Reward Strategy Case Study,
2019). This might provide FutureSence with an opportunity to understand client day to day
activities. FutureSence will also conduct a market analysis of present programs to assessing
its competitiveness and will create compensation philosophy as per the leadership vision of
the company. Secondly, FutureSence will design their future programs, including in-depth
modelling and design ideations. The primary deliverables will include, written plans, high-
level timeline implementation, and financial impact modelling (Foss & Laursen, 2003).
Thirdly, FutureSence will conduct test piloting and implementation of new programs, which
will consist of forecasting and financial analysis, written programs for procedures and
policies, change management, and extra employee’s assistance, if required (Sales
Compensation & Total Reward Strategy Case Study, 2019).
Analysis
Developing an effective strategy for total reward includes more than just finding out
what and how the market is giving and shaping reward and compensation. Total reward
strategy should be aligned with the corporate strategy and culture for driving the outcomes,
allocation of resources, and ensuring about the relevant level of pay, optimize mix and
payment method, and referring optional non-financial rewards (Knight & Cavusgil, 2004). In
this manner, FutureSence can analyse the market strategies and under its competitiveness
before bringing change in their total reward and sales compensation strategy.
Sales compensation are explained as the total compensation alternative offered for the
salesforce of the company (Noe, Hollenbeck, Gerhart & Wright, 2016). Sales compensation
is also essential in motivating the correct salesforce behaviour, which initiates the companies
in implementing the sales plan in a successful manner (Stoeckmann, 2019). If FutureSence

CASE STUDY ANALYSIS 5
corrects their sales compensation plan, then they can rightly offer financial incentives, which
are linked with the success of employees and simultaneously, they can accomplish their
objectives related with the process of selling their services (Barney & Wright, 1998). By
placing an essential part of pay at risk and relying on fulfilling the organization objective, and
emphasizing on employees and drive behaviour, FutureSence sales compensation will enable
organization in achieving success (Sales Compensation & Total Reward Strategy Case Study,
2019).
While developing the plan for sales compensation and total reward strategy, it is
significant that companies should analyse the organization objective and what is required by
employees in supporting the company in meeting their goals (Noe, Hollenbeck, Gerhart &
Wright, 2016). Connecting with the finance executive and sales executive can help in
understanding business and how sales compensation programs can be designed, which lead to
the right behaviour (Stoeckmann, 2019). The design of the program related to sales
compensation and total reward will examine the various crucial factors, which explain the
financial incentive available and how incentives can be earned (Noe, Hollenbeck, Gerhart &
Wright, 2016).
These factors include the pay mix, which is the total compensation proportion, fixed
versus variable. The fixed part is termed as salary, and the variable portion is the incentive
compensation, which is connected with the meeting the present objectives in the program of
sales compensation (Schuler & Jackson, 2014). Next factor is leverage, which examines the
sales compensation for the part of employees, which achieve the best performance level. Next
factor is performance measures, in which success is measured for employees, and in this staff
communicate precisely what is mainly expected from salesforce for attaining the payment of
incentive part of the pay mix. Next factor is individual or group measurement (Stoeckmann,
2019). In this performance is check on either group or individual basis, and the last one is

CASE STUDY ANALYSIS 6
administration. It’s essential that sales compensation success plan should pay employees
accurately within the set time (Noe, Hollenbeck, Gerhart & Wright, 2016). The keys to the
success of administration include the right and properly defined responsibilities and roles,
effective tracking, proper documentation process, and measurement systems and tools.
Sales compensation is a significant part of FutureSence total reward strategy, and the
same will enable the company sales plan with the retail client and will also support in right
business strategy implementation (Stoeckmann, 2019). It is vital that FutureSence should
analyse the core components of sales compensation, as it can open the door of partnering
options for compensation practitioner with FutureSence sales management team (Noe,
Hollenbeck, Gerhart & Wright, 2016).
Under the improvement of sales compensation strategy, FutureSence should connect
with the sales management team in the process of design and development of company’s
sales compensation and total reward strategy, and will provide high opportunity to contribute
directly to the bottom line of the company significantly (Robbins & Coulter, 2012).
Sales compensation is a different problem, and sales pay is not the depth of expertise
for everyone (Noe, Hollenbeck, Gerhart & Wright, 2016). In this case, FutureSence might
face the issue of budget, and it can get a clash with the strong business development
personalities, or it might pull the control of design plan from top of sales (Stoeckmann,
2019). FutureSence can offer needed changes in the sales compensation pay-out level and can
build effective programs, which stay for many years.
Recommendations
Compensation practices are not updated from last 20 years- it is recommended that the total
reward strategy set the critical considerations for both managing and designing the
compensation programs. It also explains the requirement to motivate, attract and retain the

CASE STUDY ANALYSIS 7
staff and drive business outcomes. It is recommended for FutureSence to develop the
compensation strategy, which is appropriate for the business.
Variable and fixed compensation is not yet decided- it is recommended to ensure that strategy
should include every important consideration required for correct compensation programs,
like, expected market positioning of the company; a relevant mix of variable and base pay;
and the connection between performance and pay (Robbins & Coulter, 2012). It is
recommended that the compensation program should be reviewed for ensuring that
compensation strategy is in line or not, for that it is recommended to assess how correctly the
present compensation program assist the company’s business strategy; evaluate the sales
compensation program in comparison with market practices of rivals; review the designed
incentive plan to test and align it with business objectives, and test the legal compliances of
problems (Laakso, 2012).
No incentive program is designed- It is recommended that program review by FutureSence
should ensure whether compensation program is aligned with immediate business goals of the
company or not, and total sales compensation approach provides options of competitive pay
or not.
As per the case study analysis, it is recommended that overarching theme should be
applied, which shift the culture of individual working to group work, as this helps all the
members to focus on group work. Reward programs can also be designed for motivating and
assisting the teamwork. It is again recommended that FutureSence should try to recreate the
hierarchy of work, which depends on the sales efforts value to identify the experiences and
competencies (Levesque, 2014). It is also recommended that the rise in base rate should stay
competitive within the market, and change management programs should be organized for
the on/off of sales adjustment. It is also recommended to develop the gainsharing options

CASE STUDY ANALYSIS 8
above the targeted level, try to pool spiffs among every respondent and share should base on
the level. It is finally recommended to identify and reward service, loyalty and FutureSence
should revisit all the ancillary benefits.

CASE STUDY ANALYSIS 9
References
Barney, J., & Wright, P. (1998). On becoming a strategic partner: The role of human
resources in gaining competitive advantage. Human Resource Management, 2, 3-67.
Chijioke, N., & Chinedu, E. (2015). Effect of Rewards on Employee Performance in
Organizations: A Study of Selected Commercial Banks in Awka
Metropolis. European Journal of Business and Management, 7(4), 2222-2839
Edirisooriya, W. (2014). Impact of Rewards on Employee Performance: With Special
Reference to Electri Co. International Conference on Management and Economics.
Foss, N., & Laursen, K. (2003). New human resource management practices,
complementarities and the impact on innovation performance. Cambridge J Econ, 7,
1-18.
Knight, G., & Cavusgil, S. (2004). Innovation, Organizational Capabilities, and the Born-
Global Firms. Journal of International Business Studies, 124-141.
Laakso, L. (2012). The impact of financial and non- financial rewards on employee
motivation. Bachelor’s thesis of Turku University of Applied Sciences. .
Levesque, R. (Ed.). (2014). Intrinsic and Extrinsic Motivation. Springer New York.
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2016). Fundamentals of Human Resource
Management. New York: McGraw-Hill Education.
Robbins, S., & Coulter, M. (2012). Management (11th ed.). Pearson Education, Inc.
Sales Compensation & Total Reward Strategy Case Study (2019). Retrieved from
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591c83acbebafbf8726b6054/1495040940469/FutureSense+Case+Study+-
+Comp+and+TR.pdf
Schuler, & Jackson. (2014). Human resource management and organizational effectiveness:
yesterday and today. Journal of Organizational Effectiveness: People and
Performance, 33-55.
Stoeckmann, J. (2019). Sales Compensation. Retrieved from
https://www.worldatwork.org/docs/sales-comp-quarterly/back-to-basics-sales-
compensation.html