Running head: PROBLEM SOLUTION: RIORDAN MANUFACTURING

Problem Solution: Riordan Manufacturing
Khwaja Shaik
University of Phoenix

Problem Solution: Riordan Manufacturing Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Production is divided among three plants: plastic beverage containers in Albany, Georgia; custom plastic parts in Pontiac, Michigan; and plastic fan parts in Hangzhou, China. Research and Development is conducted at corporate headquarters in San Jose, California. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers. This research paper will discuss the issues being faced by Riordan Manufacturing and provides solution based on various motivation, rewards and performance concepts

Situation Analysis
Issue and Opportunity Identification – Total reward system The current reward system is barely based on performance, instead recognizing cost-of-living increases, seniority and position. Faced with declining morale and work ethic, Riordan managers have been pressuring the CEO to "do something" about the rewards system. Riordan’s employees comprise three major demographic groups. Baby boomers make up the bulk of the managerial and about half of the manufacturing staff; GenXers make up the majority of the professional staff, as well as some of the manufacturing staff; and the GenY contingent are the newest hires, found primarily in manufacturing, engineering and IT. These three groups have radically different perspectives on rewards and motivation, valuing everything from interesting work to bigger paychecks.
Stakeholder Perspectives/Ethical Dilemmas Riordan made several strategic changes in the way it manufactures and markets its products. Declining sales and uneven profits over the past two years not only forced the company to change its sales processes, but prompted them to adopt a customer-relationship management (CRM) system. Customers are now serviced primarily by sales teams rather than single salespeople, with each team focusing on a particular customer segment. Teams typically include a sales person, product engineering specialist and customer service rep. The hope is that the team approach will improve sales. Shareholders demanded an articulate roadmap for new market development that complemented and augmented the sales force via CRM system. The business strategy focuses on the value proposition of products and services. To execute this strategy, the company wanted to reorganize functional units of products. The leaders were interviewed about the business strategy and asked to define a ‘to be’ (future state) culture that would best enable execution of the business strategy. The shareholders intended to integrate culture with the business strategy. The CEO and his leadership team intended to develop a career model to address the organization, leadership and people levers in the system.
Problem Statement Riordan Manufacturing employs resources with versatile backgrounds involving multiple generations, ethnicities and education background. This implies one solution does not fit all and requires custom solution with variety of compensation and reward techniques for Riordan employees. Thus the deployment of this HR solution to improve employee morale among other things requires a transformational change at Riordan.
End-State Vision The Riordan should develop a career model that provides a basis for developing general management as well as functional leadership talent, and as part of the ‘to be’ culture and retaining and developing key talent.
Alignment
Alignment between the company’s business strategy and employee and leader behavior and new culture expectations. Career models provide the internally benchmarked standards to ensure successful integration of people with company’s culture. The career models emphasize the desired collaboration across groups to deliver integrated products and services. The Career paths should emphasize meeting customers and partner expectations and the respective reward systems. The employee engagement should provide career development plans to achieve the next development level. This will ensure clarity on how to move across and navigate a company with challenging career opportunities.
Merit adjustments In the typical merit plan employees’ performance is evaluated using some type of rating scale, and their base pay is adjusted upward based on the level of their individual performance. Since base pay is not adjusted downward, merit plans involve little pay risk compared to other types of performance contingent plans. Employees whose base pay is below the midpoint of the pay range are allowed to receive a higher pay increment for a given level of performance than employees located above the midpoint. This reflects the need to control the frequency and size of pay increases as employees begin to reach the upper limits of their pay range. If the position within the pay range is not taken into account, the integrity of the entire pay hierarchy is jeopardized because pay for top performers can exceed the maximum rate allowed for their job. Merit plans maintain their ability to provide sufficient incentives for many key contributors only if top performers can be promoted into the next higher pay grade.
Incentive pay Incentive pay for executives appears to be strongly linked to shareholder performance, according to a new study by Watson Wyatt Worldwide Inc. If employees are expected to behave in extraordinary ways and add value to the firm, sharing that gain with employees meets most definitions of workplace justice and fairness. Some form of performance-contingent pay is required if employees are expected to be persistent in their efforts to add value to the firm.9 If employees believe that their contributions are instrumental in enhancing firm performance and increasing profitability, they will want to share in the benefits. Organizations have used their executive pay programs to retain and motivate management. The result has been strong economic growth and high shareholder returns. It is important for a firm’s business strategy to be translated into a compensation system which encompasses pay system to be congruent with that strategy. Firm’s business strategy, along with its technology, determines the organization’s design and work processes. These work processes call for a particular set of behavioral/role requirements for employees. Firm’s strategic priorities require a partnership orientation of the firm toward its employees, including a focus on employee behaviors of teamwork, cooperation, and team efforts toward continuous improvement of systems. It is important to choose options that promote these employee behaviors.

Alternative Solutions Riordan has a drastic goal to become one of the most desired companies to work for by resolving the current issues. Thus a transformational change requires several solutions to consider before arriving at the end state. These include Incentive pay, Merit adjustments, Training.
Analysis of Alternative Solutions
Alternative Solutions - Incentive pay Incentive pay for executives appears to be strongly linked to shareholder performance. If employees are expected to behave in extraordinary ways and add value to the firm, sharing that gain with employees meets most definitions of workplace justice and fairness. In recent years, agency theory has emerged as the principal theory guiding organizational research on the pay–performance relationship (e.g., Gerhart & Milkovich, 1990; Roth & O’Donnell, 1996; Stroh, Brett, Bauman, & Reilly, 1996). Agency theory deals with the problems of creating a contract governing the exchange between individuals who have divergent interests (Baiman, 1990; Eisenhardt, 1989; Jensen, 1983). In the employment relationship, the basic agency problem is characterized in terms of properly structuring monitoring and compensation systems to induce self-interested, utility maximizing, risk and effort averse agents (e.g., managers who want to maximize their compensation and minimize their effort expenditures) to act on the principal’s
(e.g., owners who want to increase the value and performance of their firm) behalf (Eisenhardt,
1989; Jensen & Meckling, 1976; Levinthal, 1988). Some form of performance-contingent pay is required if employees are expected to be persistent in their efforts to add value to the firm. If employees believe that their contributions are instrumental in enhancing firm performance and increasing profitability, they will want to share in the benefits. Organizations have used their executive pay programs to retain and motivate management. The result has been strong economic growth and high shareholder returns.
Alternative Solutions - Merit adjustments
In the typical merit plan employees’ performance is evaluated using some type of rating scale, and their base pay is adjusted upward based on the level of their individual performance. Since base pay is not adjusted downward, merit plans involve little pay risk compared to other types of performance contingent plans. Employees whose base pay is below the midpoint of the pay range are allowed to receive a higher pay increment for a given level of performance than employees located above the midpoint. This reflects the need to control the frequency and size of pay increases as employees begin to reach the upper limits of their pay range. If the position within the pay range is not taken into account, the integrity of the entire pay hierarchy is jeopardized because pay for top performers can exceed the maximum rate allowed for their job. Merit plans maintain their ability to provide sufficient incentives for many key contributors only if top performers can be promoted into the next higher pay grade. Riordan must consider meeting or exceeding market values for pay compensation. This will pave the way in enhancing employee satisfaction and attract or retain top talent.
Alternative Solutions – Training Riordan should invest in its employees by providing just-in-time training and linking its P4P database with the individual development/training plans. Succession planning is about developing candidates for success than identifying those who are coincidentally prepared. Furthermore, growing talent within organizations yields leaders who, through their historical knowledge and experience in the organization, have earned the trust of the organization and are more likely to be accepted as knowledgeable, capable leaders. People and positions should be tracked via an effective technology-based talent management system. This should be robust to accommodate all the company's employees but primarily should be used to track middle- and upper-management employees. The term “succession planning” refers to a systematic process of developing individuals to fill an organization’s key roles. When a productive succession plan exists, the organization will have a sufficient number of qualified individuals to fill key positions. Individuals on the plan are typically identified in terms of their readiness to fill specified roles within a given time period. Succession planning should not be confused with replacement planning, which provides for temporary placement in key positions when an unexpected vacancy occurs. Succession plan criteria should include examples of previous success in critical operational experiences as well as a consistent demonstration of specific, relevant, and observable behaviors that are deemed necessary for organizational success. Additionally, succession plans must guide individual development for those on the plan. Individuals responsible for succession planning should have well-defined roles and responsibilities. Just as important, the plan and its effectiveness should be reviewed regularly. HR staff must also ensure that there is a pipeline of diverse individuals who will complement leadership team competencies and capabilities. HR should structure forums for executives to review candidates’ job performance and behaviors. A senior HR executive should also address any apparent favoritism or exclusion and return the focus to stage appropriate behaviors.
Risk Assessment and Mitigation Techniques Some of the risks associated with the implementation of Incentive Pay, Merit pay adjustments, Total rewards and compensation, and Training are Quality, Productivity, pay tied to factors beyond the worker’s control, Competitors may gain from the turnover, High turnover, Lack of career advancements, Lack of clarity on employer’s contribution to total rewards, Lack of expandability of skills, and Low productivity. These risks can be mitigated by, Enhanced reward and recognition, Better opportunities, Effective compensation, Market pay adjustments, Competitive perks, Effective compensation, Competitive benefit package, Creating opportunities and Pay based on skills.
Optimal Solution

Riordan Manufacturing is facing several issues leading to decreasing employee morale. Riordan’s employees comprise three major demographic groups which includes Baby boomers, GenXers and the GenY. Because of these demographics, Riordan should implement different types of HR solutions that suits these respective groups. Faced with declining morale and work ethic, Riordan managers have been pressuring the CEO to "do something" about the rewards system. So the key is what Riordan’s staff members really want. Employees who are completely satisfied with how they are recognized at work are seven times more likely to spend the rest of their careers with the company than those who aren't. Riordan should implement innovative incentive system and provide employees with total rewards information. This can be done through a stand-alone product, or the self-service modules of a human resource information system. The first step in developing tools to give employees access to their compensation information is automating the compensation review process. Communicating employees' rewards package is also an advantage in retaining high performers. Employers must ensure that managers are well-trained in explaining the compensation policies. Sharing compensation data builds trust and commitment among employees. Riordan should provide career models that provide the internally benchmarked standards to ensure successful integration of people with company’s culture. The career models should emphasize the desired collaboration across groups to deliver integrated products and services. The Career paths should emphasize meeting customers and partner expectations and the respective reward systems. The employee engagement should provide career development plans to achieve the next development level. This will ensure clarity on how to move across and navigate a company with challenging career opportunities. Riordan should ensure appropriate Merit adjustments for its employees. If the position within the pay range is not taken into account, the integrity of the entire pay hierarchy is jeopardized because pay for top performers can exceed the maximum rate allowed for their job. Merit plans maintain their ability to provide sufficient incentives for many key contributors only if top performers can be promoted into the next higher pay grade. Riordan’s business strategy, along with its technology, determines the organization’s design and work processes. These work processes call for a particular set of behavioral/role requirements for employees. Firm’s strategic priorities require a partnership orientation of the firm toward its employees, including a focus on employee behaviors of teamwork, cooperation, and team efforts toward continuous improvement of systems. It is important to choose options that promote these employee behaviors. Riordan’s managers must provide employees with a balance of intrinsic and extrinsic motivations. Paying attention to ordinary conversations can reveal extraordinary information. By putting these tips into action, Riordan can create an environment where people feel good and are inspired to perform at their best. Furthermore, growing talent within organizations yields leaders who, through their historical knowledge and experience in the organization, have earned the trust of the organization and are more likely to be accepted as knowledgeable, capable leaders. People and positions should be tracked via an effective technology-based talent management system. This should be robust to accommodate all the Riordan's employees but primarily should be used to track middle- and upper-management employees. Merit adjustments and incentive pays are two god ways of rewarding and motivating employees. Incentive pay for executives appears to be strongly linked to shareholder performance. It is important for a Riordan’s business strategy to be translated into a compensation system which encompasses pay system to be congruent with that strategy. Riordan’s business strategy, along with its technology, determines the organization’s design and work processes. These work processes call for a particular set of behavioral/role requirements for employees. Riordan’s strategic priorities require a partnership orientation of the firm toward its employees, including a focus on employee behaviors of teamwork, cooperation, and team efforts toward continuous improvement of systems. It is important to choose options that promote these employee behaviors. Thus Riordan’s successful implementation of Rewarding Success Plan and Pay for Performance process will reach its end state goals and improve employee morale.
Implementation Plan To Create motivational techniques; for a period of 2-3 weeks Yvonne McMillan, Director of Human Resources will work with his team. To improve opportunities to employees; for a period of 8-10 weeks Michael Riordan, founder, President, Chief Executive of Riordan will work with his executives. The reward and recognition program will be implemented in a period of 4-6 months by Hugh McCauley, Chief Operating Officer. To improve processes around compensation management; for a period of 3-6 months; Kenneth Collins, Senior Vice President of Research and Development will work with Barbara Masterson, Human Capital's Senior Consultant. To perform research through benchmarking on compensation packages; for a period of 4-6 weeks Kenneth Collins, Senior Vice President of Research and Development will be engaged. To design the total reward system that caters to the diverse demographics for a period of 7-9 months; Hugh McCauley, Chief Operating Officer will work with his team.
Evaluation of Results By motivating employees Riordan Manufacturing can improve employee loyalty. Employee loyalty should be measured by employee engagement surveys. HR should be very responsive to reorganize the departmental units by analyzing the engagement survey data. Riordan Manufacturing should compensate employees based on team performance. Each department should have score cards and measured against peer groups while allocating the incentive pool. Riordan should retain top performers/key performers by providing market-based compensation. Talent Planning is a business process that looks at the current state of the organization to ensure that the best talent is matched with the most critical roles and toward the future of an organization to ensure a healthy pipeline of leaders exists to grow and sustain the business. Talent Planning links to other people processes by following a yearly cycle. The Talent Planning process should be part of the overall Talent Management process that ensures the firm is acquiring, managing, organizing and rewarding talent. The Talent Planning process should be integrated with Performance Management, 360 Feedback and Compensation. Performance Management entails with Aligning, Developing & Managing the Best Talent in the World. Identifying performance (the "what" and the "how") and potential ratings, as well as development action plans play a vital role in rewarding People for Performance. The 360 Tool Feedbacks ensures direct feedback on associate strengths and development needs from peers, managers, and direct reports. The Talent Planning tool is a component of HRMS that allows for greater interaction and integration by receiving critical data from other Human Resources processes and applications, including Performance Management, 360 Feedback, and Compensation Planner. Managers, along with Riordan’s Executives and Human Resources, are responsible for the year round talent planning follow-ups activity. Riordan Executives should implement and track against talent planning action plans throughout the year to ensure progress on commitments made during the talent planning process. Managers should act on the commitments made during the Talent Planning Process and continually monitor and review team planning data, ensuring that the most up-to-date information is reflected in team and associate talent assessments.

Conclusion It is important for a firm’s business strategy to be translated into a compensation system which encompasses pay system to be congruent with that strategy. Firm’s business strategy, along with its technology, determines the organization’s design and work processes. These work processes call for a particular set of behavioral/role requirements for employees. Firm’s strategic priorities require a partnership orientation of the firm toward its employees, including a focus on employee behaviors of teamwork, cooperation, and team efforts toward continuous improvement of systems. It is important to choose options that promote these employee behaviors.

References Baiman, S. 1990. Agency research in managerial accounting: A second look. Accounting,
Organizations and Society, 15: 341-371.

Gerhart, B., & Milkovich, G. T. 1990. Organizational differences in managerial compensation and financial performance. Academy of Management Journal, 33: 663-691. Roth, K., & O’Donnell, S. 1996. Foreign subsidiary compensation strategy: An agency theory perspective. Academy of Management Journal, 39: 678-703. Stroh, L. K., Brett, J. M., Bauman, J. P., & Reilly, A. H. 1996. Agency theory and compensation strategies. Academy of Management Journal, 39: 751-767.

Baiman, S. 1990. Agency research in managerial Organizations and Society, 15: 341-371.

Table 1
Issue and Opportunity Identification
|Issue |Opportunity |Reference to Specific |Concept |
| | |Course Concept | |
| | |(Include citation) | |
|Riordan made several strategic changes in the way it |Riordan can implement |Motivational differences among|Models of motivation |
|manufactures and markets its products. This has impacted|motivational techniques |employees can account for huge| |
|employee motivation and performance at Riordan |based on the employee |differences in their relative | |
|Manufacturing. This is due to different needs of |demographic needs. |productivity. Thus, an | |
|demographic groups of employees within Riordan. |Motivation, is the key |understanding of key theories | |
|Motivation refers to an employee’s willingness to exert |attribute for effective |or “models” of employee | |
|effort toward a goal (Dreher and Dougherty 2001, p. 23).|performance. Motivation |motivation can equip managers | |
| |must be present for |with tools which are essential| |
| |someone to achieve the |for managing people. We | |
| |desired results, whether |conclude this chapter with an | |
| |this be at work or at |overview of two models of | |
| |home. The managers and |motivation which we believe | |
| |leaders of Riordan must |are especially valuable for | |
| |be able to identify and |managers: expectancy theory | |
| |influence these behaviors|and organizational justice | |
| |in other individuals to |(distributive and procedural | |
| |understand their |justice). Managers can use | |
| |employees and to provide |these two theories both in | |
| |the right guidance. |diagnosing motivational | |
| |Motivation is both an |problems and | |
| |inside-out and an |also in identifying strategies| |
| |outside-in proposition. |for increasing employees’ | |
| |Managers and must provide|motivation to perform | |
| |employees with a balance |key behaviors. In our | |
| |of intrinsic and |discussion of the expectancy | |
| |extrinsic motivations. |and organizational justice | |
| |Intrinsic motivation |models, we also provide a | |
| |comes from within; |variety of examples of how | |
| |extrinsic is being |managers can use | |
| |motivated from outside |these models to promote key | |
| |oneself by someone or |employee behaviors (Dreher and| |
| |something else. Most |Dougherty 2001, p. 34). | |
| |managers rely on | | |
| |thank-you notes, money, | | |
| |and special privileges. | | |
| |The problem: This loses | | |
| |its power over time. To | | |
| |inspire intrinsic | | |
| |motivation, know your | | |
| |employees’ goals. Would | | |
| |they like recognition, | | |
| |growth opportunities, | | |
| |challenge, collaboration,| | |
| |creative project, | | |
| |telecommuting, prestige, | | |
| |independence? Paying | | |
| |attention to ordinary | | |
| |conversations can reveal | | |
| |extraordinary | | |
| |information. By putting | | |
| |these tips into action, | | |
| |you create an environment| | |
| |where people feel good in| | |
| |your presence, and are | | |
| |inspired to perform at | | |
| |their best. | | |
|Employee retention numbers have declined at Riordan. |Riordon management should|Indirect forms of compensation|Concept of Total |
|Unfortunately, the current reward system is barely based|provide employees with |can also be important in |Rewards |
|on performance, instead recognizing cost-of-living |total rewards |Midwest’s HR system. | |
|increases, seniority and position. Faced with declining |information. This can be |Attractive benefits comprise | |
|morale and work ethic, Riordan managers have been |done through a |part of a total compensation | |
|pressuring the CEO to "do something" about the rewards |stand-alone product, or |package that must be | |
|system. Employees are more likely to stay with firms |the self-service modules |competitive, | |
|that provide them with what they value. Here the match |of a human resource |especially for the objectives | |
|is between staying and getting what is desired. In the |information system. The |of attracting and retaining a | |
|performance model, the match was between high |first step in developing |high-quality sales | |
|performance |tools to give employees |force. Which benefits are most| |
|and getting what is desired (Dreher and Dougherty 2001, |access to their |valued can be determined by | |
|p. 115). |compensation information |surveying both | |
| |is automating the |current employees and | |
| |compensation review |prospective applicants. | |
| |process. Communicating |Benefit flexibility (e.g., a | |
| |employees' rewards |cafeteria plan) could also | |
| |package is also an |ensure that the sales force | |
| |advantage in retaining |values the benefit | |
| |high performers. |package (Dreher and Dougherty | |
| | |2001, p. 284). | |
|The current reward system is barely based on |It is important for a |In this chapter we have looked|Aligning reward and |
|performance, instead recognizing cost-of-living |Riordan’s business |at concepts, decisions, and |compensation systems |
|increases, seniority and position. |strategy to be translated|techniques relevant |with the firm’s |
|Riordan’s Sales management wants an improved commission |into a compensation |to maintaining effective |business strategy |
|structure that recognizes the new teamwork philosophy, |system which encompases |compensation and reward | |
|while salespeople fear their bonuses could be at risk if|pay system to |programs. Our goal | |
|they depend on team, and not individual, performance. |be congruent with that |was to assist general managers| |
|Other managers are concerned that, with or without |strategy. Riordan’s |in making key decisions about | |
|incentives, their employee base salaries are too low to |business strategy, along |compensation. | |
|retain good people and are urging the CEO to increase |with its technology, |These decisions begin with | |
|pay levels. Engineering and IT managers are particularly|determines the |identifying key employee | |
|concerned that several employees with proprietary |organization’s design and|behaviors for | |
|information may leave the organization for greener |work processes. These |aligning compensation with the| |
|pastures. |work processes call for a|firm’s business strategy. | |
|A review of the model of an HR system presented in |particular set of |Managers must | |
|Figure 1–1 will suggest how the firm’s business strategy|behavioral/role |then make decisions about the | |
|could be translated into a compensation system that is |requirements for |appropriate levels of pay | |
|congruent with that strategy. Our model asserts that the|employees. |compared to other | |
|firm’s business strategy, along with its technology, | |firms (external | |
|determines the organization’s design and work processes.|Riordan’s strategic |competitiveness) and develop a| |
|These work processes call for a particular set of |priorities require a |systematic approach to | |
|behavioral/role requirements for employees. Managers |partnership orientation |determining | |
|must design HR systems that promote these behaviors, |of the firm toward its |a pay structure for jobs | |
|while also taking into account contextual factors |employees, including a |within the firm (internal | |
|affecting the firm, especially labor markets and the |focus on employee |consistency) (Dreher and | |
|legal environment (Dreher and Dougherty 2001, p. 79). |behaviors of teamwork, |Dougherty 2001, p. 97). | |
| |cooperation, and team | | |
| |efforts toward continuous| | |
| |improvement of systems. | | |
| |It is important to choose| | |
| |options that promote | | |
| |these employee behaviors.| | |

Table 2
Stakeholder Perspectives
|Stakeholder Perspectives |
| | |
|Stakeholder Groups |The Interests, Rights, and |
| |Values of Each Group |
| |Michael firmly believes that the company takes good care of its employees |
|Michael Riordan: Riordan Manufacturing's 60-year-old founder, |and that employee loyalty would go a long way toward solving the company’s|
|President, Chief Executive |motivation problems. He is also increasingly concerned about the value of |
| |his investment as he nears retirement age. |
|Kenneth Collins: Riordan's Senior Vice President of Research |A brilliant technician, Kenneth has led R&D to develop several innovative|
|and Development |products, and is now very worried that he might lose key researchers |
| |because of inadequate compensation. Kenneth gets along well with the sales|
| |group, but is not well-liked by the manufacturing team. |
| |As an engineer, he believes that most motivation issues are the result of |
|Hugh McCauley: Riordan's Chief Operating Officer. |poorly designed processes. Rather than focusing on compensation, he |
| |believes the organization should improve job design. |
|Charles Lacy: Riordan's Vice President of Sales & Marketing. |Charles is credited with the changes in the sales process, including team |
| |sales, and is a strong advocate for compensating employees based on team |
| |performance. |
|Maria Trinh: Riordan's Chief Information Officer. |Maria is very concerned about losing key staff members because of |
| |inadequate compensation, particularly because they are in the midst of a |
| |major system redesign. To prevent this, she would like to see compensation|
| |levels adjusted for IT professionals. |
|Yvonne McMillan: Riordan's Director of Human Resources. |Yvonne has been unable to secure HR a more active and strategic role in |
| |the organization. Yvonne often complains that she’s treated as nothing |
| |more than a personnel manager. She conducts the annual employee survey, |
| |but has never seen any changes implemented because of the survey results, |
| |and doubts very much she ever will. |

Table 3

Analysis of Alternative Solutions
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Table 4
Risk Assessment and Mitigation Techniques
|Risk Assessment and Mitigation Techniques |
|Alternative Solution |Risks and Probability |Consequence and Severity |Mitigation Techniques |
|Incentive Pay |Quality |Medium |Enhanced reward and recognition. |
| |Productivity |High |Better opportunities. |
| |pay tied to factors beyond the |Low |Effective compensation. |
| |worker’s control | | |
|Merit pay adjustments |Competitors may gain from the |Low |Market pay adjustments |
| |turnover |Medium |Competitive perks |
| |High turnover | | |
|Total rewards and compensation|Lack of career advancements |High |Effective compensation. |
| |Lack of clarity on employer’s |Medium |Competitive benefit package. |
| |contribution to total rewards | | |
|Training |Lack of expandability of skills |High |Creating opportunities |
| |Low productivity |Medium |Pay based on skills |

Table 5
Optimal Solution Implementation Plan
|Deliverable |Timeline |Who is Responsible |
|Create motivational techniques |2-3 weeks |Yvonne McMillan, Director of Human |
| | |Resources |
|Improve opportunities to employees |8-10 weeks |Michael Riordan, founder, President, |
| | |Chief Executive |
|Reward and recognition program |4-6 months |Hugh McCauley, Chief Operating Officer |
|Improve processes around compensation management |3-6 months |Kenneth Collins, Senior Vice President |
| | |of Research and Development, Barbara |
| | |Masterson, Human Capital's Senior |
| | |Consultant. |
|Benchmarking on compensation packages |4-6 weeks |Kenneth Collins, Senior Vice President |
| | |of Research and Development |
|Design the total reward system that caters to the |7-9 months |Hugh McCauley, Chief Operating Officer |
|diverse demographics. | | |

Table 6
Evaluation of Results
|End-State Goals |Metrics |Target |
|Improve employee loyalty via motivational |Employee engagement through surveys |90 percent or more – Exceeds |
|techniques | |80-90 percent – Meets |
| | |