Compensation Program Challenges Over the Term Paper

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At the same time, there will be increased amounts of compensation. This will ensure that all employees are treated equally by: receiving a salary that is in line with their skills. Over the short-term, this means that there will be a decrease in earnings and profit margins. However, over the long-term is when there will be an increase in productivity and earnings.

The way that this will affect employees is to give them greater leverage over their roles in the firm. As, they will feel a sense of pride and are willing to go the extra mile for customers based upon the total compensation packages they are receiving.

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This is the point that they will have an appreciation for their work.

Clearly, Family Dollar is dealing with some major challenges when it comes to their compensation programs. This is because, their manager designation is side stepping the law and increasing the possibility of litigation. To avoid these problems, the company needs to take an approach of using a tiered system based upon seniority and job performance. This will help the company to make a smooth transition in promoting employees. While at the same time, it is staying within the parameters of the law......

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