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Creation of a new employee compensation and incentive plan

Smit, Mark (2015) Creation of a new employee compensation and incentive plan.

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Abstract:Personnel expenses are a big part of companies overall expenses, but not always valued as important as other expenses. Especially in time spans when companies underperform and sales decrease, personnel still has to be paid. This can potentially lead to liquidity problems, as is recently shown in the case of the Dutch retailers Blokker and Vroom & Dreesman. It is therefore important to investigate in what way manageability of personnel expenses can be increased and where possible can be connected to performance of the company. This research proposes that manageability of personnel expenses can increase by connecting personnel expenses to revenues, since both these variables together lead to the overall wage rate of a company. Management of iCentre have recognized the problems around personnel expenses and allowed for analysis in the form of a case study of the company’s employee compensation. This analysis underlined the fluctuation of wage rate during under and over performing weeks of sales. A connection between personnel expenses and revenues has proven to increase manageability of the wage rate of the company. This connection between personnel expenses and revenues has been created by a new innovative Employee incentive plan, based on previous models of incentives and rewards for employees in sales forces.
Item Type:Essay (Master)
Clients:
BAS Group, Almere, Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/66923
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