Question

Jessica Taplow head of people and culture at iQmetrix software development Corp. The company's staff are mostly young, genius, well educated people who needs authority for keeping their creativity and are hard to control. The manager is thinking of an conpensation management system that fits the company .

* Why do employers evaluate employees?

* What options do employers have for evaluating employees?

* Design a compensation system that fits the company circumstances.

Answer 1

Why do employers evaluate employees?

The employee evaluation process is carried on based on the performance of the employees. Employee evaluation helps employers to make decisions based on pay raise, promotion, layoffs, etc. Employees are also being reminded of what they are being expected by the employers. This way they can remain in track and can contribute more towards the company.

What options do employers have for evaluating employees?

To evaluate the employees, employers need to first set the performance standards of individual employees based on the standard metrics. Specific goals are also needed to set for each of the individual employees so that they can understand what is expected from them. It is not good to compare employees' performances as this may decrease the morale of the employees.

A compensation system that fits the company circumstances -

As the software development company has employees who are mostly young and bright, they are educated and are highly creative, so the manager can seek a compensation system that can enhance their innovative power. Some of the compensation are wages, bonuses, incentives, commission, pay for performance, different allowances, etc. In this case, the manager can use a pay-for-performance compensation system as this can encourage the staff in the software development company to put more creativity and work hard.