Strategic decisions help guide the activities of companies in the market, while tactical decisions support the fulfillment of strategic decisions (Martocchio, p. 9). CapraTek should ensure that its new compensation plan aligns with the company’s goals and strategic plan. Based on the interviews with key stakeholders, everyone agreed that recruiting top talent was most important. With the newer facility, CapraTek will be attracting a younger workforce such as Millennials and Generation Xers. It will not be enough for the company to hire employees, but it will be especially important to train and retain them. Additionally, the company should consider implementing a merit pay system. With merit pay the program assumes that employees’ compensation overtime should be determined, by the differences in job performance (Martocchio, p. 57). It is not ideal for every employee to receive a bonus or pay increase. With a merit pay system employees are award based on individual achievements in the …show more content…
With a new location in progress, the company is also planning to revamp their current compensation and reward package for employees. The organization must first identify their strategic and tactial decisions, research current stakeholders, and determine key compensation areas and issues. Senior leaders, of the organization, really want to focus on recruiting top talent. Once top talent is recruited the company can focus on training and retaining these employees. The current demographic within Mahomet is mainly Millennials and Generation Xers, therefore CapraTek must research the current market to evaluate key areas and issues with compensation that might arise. Within the total rewards plan, the organization must address benefits, paid time off, work life balance, and company incentives. Additionally, some issues that might arise with the program include budget restraints, understanding what motivates employees, and remaining competitive with the