Essay about Bus 409

861 Words Jul 16th, 2013 4 Pages
Compensation Practice
Strayer University
BUS409 –Compensation Management
May 2, 2013

Compensation Practice
This paper was developed under the scenario of choosing the name of a publicly traded company for that would be interesting for an employee to work and then analyzing and explaining the company, its compensation strategy, best practices the company is applying, and compensation-related challenges the company is facing. The paper will also analyze how the company applies compensation practice to determine the positive or negative impact to the company and its stakeholders; and the ways in which laws, labor unions, and market factors impact the company’s compensation practices. The company chosen was Chic-fil-a.
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It is studied that employees become more valuable with time and may pick up and leave the organization if the individual feel that their pay won’t increase progressively over time. Now Seniority usually goes hand and hand with government jobs which pay increase is automatic, for example when I served in the Navy for 4 years seniority played a big part and our pay increase was every year but was equal for all ranks, regardless of seniority. Merit pay is the compensation over time should be determined by differences in job performance, it is said to reward excellent performance, motivation for future employees and help retain valued employees. “Meeting standards result in pay raise”. The Merit pay system is what’s used within Chic-fil-a, bonuses, extra vacation days, and pay raises are given to Chic-fil-a employees.
Incentive based and focused-person compensation is believed to be the key to continued growth within an organization. 15%-35% incentives are cash based meaning companies give their lead executives bonuses or commission checks. Chic-fil-a is notorious for this. If you franchise a Chic-fil-a you will get a commission check every 6 months and bonus check every year just for being part of the Chic-fil-a franchise, added to that you can’t have any other business ventures and is 100% dedicated to

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