Based upon your knowledge of proper rewards and contingent pay plans, please critique these two reward programs and provide suggestions on how the managers of each division can improve their reward programs
Loggers:
• Each month, the team with the most cords per day produced will receive a one-time cash bonus that is 20 percent of their monthly salary.
• Every six months, the team with the fewest injuries, measured by days missed because of injury, will receive a half-day off.
Machinists:
• Each week, the team with the greatest number of cut lumber produced will receive a catered meal by a local steakhouse.
• Every quarter, the individual with the fewest reported injuries receives one day of paid vacation.
H.H. Haley Company is a logging company located in the northwestern United States that engages in forest management to produce lumber for cabins, paper, and building supplies. H.H. Haley is largely comprised of two different types of teams: loggers and machinists. The loggers are teams of four to eight that are responsible for cutting down trees and transporting the lumber to the company’s mill. Throughout the year, the H.H. Haley Company runs anywhere between four to eight logging teams.