Section $1-$ In this section, there are three ways to financially compensate employees for their performance on an annual $($or more frequent$)$ basis.

First, calculate options $1,2$ and $3$ for employees.

Second, calculate options $1,2$ and $3$ for supervisors$/$managers$.$

Option $1-$ give annual pay raises for their performance

Option $2-$ give a lump sum$/$bonus pay amount to everyone

Option $3-$ give a lump sum$/$bonus pay amount to top performers only

Section $2-$ In this section, employees earn a base rate of pay and they are also financially incentivized for their performance as shown in the two options below.

Option $1-$ Physician Practice Financial Incentive$-$ incentive to complete billing accurately and timely for a physician practice

Option $2-$ Car Salesman Commission$-$ incentive to sell cars

Section $3-$ In this section, please consider what you learned from this activity and answer the $4$ questions at the end of this document

Background Information:

# of Employees Average Annual Rate of Pay per Employees # of Supervisors and Managers Average Annual Rate of Pay Per Supervisory$/$Management

Employee

$450$ $

$50$ $

Student can select the average annual rate of pay for the employees in your exercise. Student can select average annual rate of pay for the supervisors$/$managers in your exercise.

Section $1-$ Employee Compensation

Option $1$ Option $2$ Option $3$

What percentage raise do you propose per year? Choose one:

$[]2\%$

$[]3\%$

$[]5\%$

$[]8\%$ How often do you propose to reward employees with a lump sum$/$bonus pay amount? Choose one.

$[]$ Quarterly

$[]$ Every $6$ mths

$[]$ Once a year How often do you propose to reward top performing employees with a lump sum$/$bonus pay amount? Choose one.

$[]$ Quarterly

$[]$ Every $6$ mths

$[]$ Once a year

How much will this cost the company per person per year?

$ $/$employee$/$year

How much money do you plan to spend per person per year?

$ $/$employee$/$year How much money do you plan to spend per person per year?

$ $/$employee$/$year

all employees$/$year

$

all employees$/$year

$ all employees$/$year

$

To calculate this cost:

Multiply the percentage you selected times the annual wage. Then multiply the result times the number of employees in your company. To calculate this cost: Multiply the amount you selected per year, times the number of employees in your company. To calculate this cost:

Multiply the amount per year, times the number of top performers in your company. You can use between $10-20\%$ as top performers, or $45-90$ employees.

Section $1-$ Supervisor$/$Manager Compensation

Option $1$ Option $2$ Option $3$

What percentage raise do you propose per year? Choose one:

$[]2\%[]3\%$

$[]5\%[]8\%$ How often do you propose to reward supervisors$/$managers with a lump sum$/$bonus pay amount? Choose one.

$[]$ Quarterly $[]$ Every $6$ mths

$[]$ Once a year How often do you propose to reward top performing employees with a lump sum$/$bonus pay amount? Choose one.

$[]$ Quarterly $[]$ Every $6$ mths

$[]$ Once a year

How much will this cost the company per person per year?

$ $/$employee$/$year How much money do you plan to spend per person per year?

$ $/$employee$/$year How much money do you plan to spend per person per year?

$ $/$employee$/$year

all employees$/$year

$

all employees$/$year

$ all employees$/$year

$

To calculate this cost:

Multiply the percentage you selected times the annual wage for supervisors$/$managers$.$ Then multiply the result times the number of supervisors$/$managers in the company $(50).$ To calculate this cost: Multiply the amount you selected per year, times the number of supervisors$/$managers $(50)$ in your company. To calculate this cost:

Multiply the amount you selected per year, times the number of top performing supervisors$/$managers in your company. You can use a number between $10-20\%$ as top performers, or $4-9$ employees.

Section $2-$ Financial Incentives for Specific Performance

Option $1$

Patient Billing Financial Incentive Option $2$

Car Salesman Commission

Number of Employees Potentially Eligible

Description of Incentive:

Clear expectations, what we are measuring and what the goals are for financial performance.

Annual Budget

Section $3-$ Please reply to the following $4$ questions.

Q$1.$ Are there any programs that are low cost$/$no cost that you would consider implementing? If yes, please describe.

Q$2.$ Your job is to recommend a plan that will motivate employees, supervisors, and managers to a higher level of performance. it can be strictly pay as shown in the charts, a combination of the pay options, or a combination of pay with low cost$/$no cost rewards. to get the level of performance you need, what are your recommendations. Please be thorough and explain what you selected and why.

Q$3.$ Was it hard to decibe what to do$?$ Why? If it was easy, why?

Q$4.$ Did you learn anything from this chapter and exercise that can help you in your future career as a leader.