Thank you for the opportunity to help you with your question!
To effectively manage wages I would use the pay for performance compensation scheme. A pay for performance compensation scheme would ensure that top performers get the highest bonus, salaries and promotions Average performers would receive relatively smaller increases while non performers would only receive basic pay and even more stringent supervisory.
A pay for performance model would ensure that the employee wage bill is always managed in that payment will always be based on individual and overall business performance. At no time would employees receive bonuses or increases if they were non-performers, but would only receive bonuses and increases if the performed.
Employees roles would also be defined by pay bands.Control points would be introduced in the pay bands in order to limit individual pay progression and thus serve as a “brake” on growth in total salary costs.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 26th, 2015
Did you know? You can earn $20 for every friend you invite to Studypool!