I need a discussion response to my classmates discussion pos

I need a discussion response to my classmates discussion post for our Performance Management Class

In this scenario, I have to agree with the CEO in that when employees get good performance reviews, they should be rewarded otherwise there would be no point in the reviews. Not all employees are going to perform at the same level, therefore for those who perform above average, they should feel that their efforts are appreciated and, a 1% increase is not unreasonable if salaries are included in the $13,000,000 annual budget.

As a non-profit organization, it is understandable that there are constraints, so in order to retain as well as attract quality employees; the reward should be adequate particularly for the medical services personnel who have the difficult job of working with the cognitively impaired.

            The question is posed, ‘Is keeping your job adequate reward for good performance during these lean times’?. The problem is that employees are not willing to ‘settle’ regardless of lean times if they feel that an organization does not treat them right. Employee turnover for the non-profit has improved and there is an increase in applications; so I believe that, in the CEO trying to be fair regarding compensation, that   has had a positive impact on the organization and we need to look at all the aspects of the compensation system and its repercussions since we want motivated and committed employees. According to Milkovich, 2016, fairness is a fundamental objective of pay systems, therefore employees should be rewarded for their contributions accordingly

Solution

Just keeping the job would not be adequate to retain the employees. One can ensure the retention of employees in two ways:

--> Following the correct recruitment measures. Selecting the right candidates plays a very important role. Potential candidates must be given clarity on the pay , pay hikes, reward programs ,etc in the recruitment stage. When employees join after being aware, retention rates would be higher.

--> Including variable components in the compensation system. High performers would earn good variable part and low performers would earn less. This keeps employees motivated to achieve more. Yearly appraisal for any employee must be there as inflation is common in the economy and employee too expects increased salary to meet his/her expenses. During the lean times, employees might lose their variable pay but would not feel that bad becuase they already knew that it\'s a variable. But, when yearly increment is not given , employees would definitely get demotivated.