Employee Incentive Plan Evaluation at XYZ Industries Essay

Employee Incentive Plan Evaluation at XYZ Industries - Essay workoutThe attach to will implement a new inducement designing, the details of which are given in the following sections. The jut out will be reviewed after a period of twelve months. Objective To gravel the leading provider of blood bags in North America. Types of incentives proposed Incentive plans are broadly classified into trey groups, namely those for individuals, groups, and the enterprise (Bohlander & Snell, 2010, 455). Individual incentives a. Hourly pay of $5 per hour with a maximum of $10 a day (five working days). Every employee is eligible. b. Sales incentive 25 cents per bag, for exceeding targets for sales and trade staff. There is no limit on the amount that can be earned. c. Bonuses Thirty part of staple pay for all employees twice a year (employees are at liberty to choose the time, nevertheless needs to provide one months advance notice. d. ... cturing and packing (Note the company has excess output signal capacity and aims to achieve a 30 percent add-on in sales this year) Enterprise incentives a. The Company is planning to go public and is planning to introduce 100,000 circumstancess in February 2011. It is expected the value of each share will be approximately $7. Of these, thirty percent will be held by the owners, fifteen percent will be given as employee ownership, and the rest be made public. Employees are not allowed to shell out the shares to the public for a minimum period of five years. It is hoped that full cooperation from all employees and departments will be at that place for the successful implementation of the incentive plan. Review of the bonus plan A review of the effectiveness of the plan was made after a period of fifteen months in June, 2011. The gap of an special three months (plan introduced in January 2010). This was to assess the impact of the stock ownership plan which was planned in February 2011, as mentioned in the incentive plan. The review was conducted by the human resources manager, Mr A. as he had a good rapport with all employees. This was the origin time that a relatively comprehensive incentive plan was introduced. Previously, only the group bonus plan was in operation. Hence the employees were willing to cooperate until the period of review was over. Moreover they were happy that they could obtain additional compensation when compared to previous years. But the following drawbacks were noted after discussions, which need to be looked into by the trouble and implemented as far as possible. The company did achieve it target of thirty percent increase in sales. With regard to the sales and marketing personnel had the following complaints especially from the top performers who