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Designing Indirect Pay, Performance Pay and Evaluating Program Effectiveness.

Continuing with the case study approach, you will be given an opportunity to demonstrate your ability to develop effective performance pay and indirect pay programs. You will also demonstrate your understanding of program implementation and evaluation to ensure effectiveness.

You will continue to work with the case study from the previous assignment to complete this assignment. Continuing on from Assignment , outline what your performance pay and indirect pay programs will look like. Detail your plan for implementation of the new system and how to ensure it is effective at reaching your compensation strategy goals, including the following elements:

Will you have a performance pay program and if yes, will it be based on individual, team or organizational performance, or a combination of two or more? What will the plan look like in terms of measures, evaluation process, payouts, and frequency of payouts?

What behaviours are you trying to encourage with this program?

What will you include in your indirect pay program?

Will the benefits be the same for each employee or will they be different? Why or why not?

What behaviours are you trying to encourage through your choice of indirect pay?

What is your plan for implementing the new compensation system?

How will you move employees on to the new plan, how will you communicate the plan to everyone, and how will everyone move through the structure, as they progress in terms of service, performance, and job duties?

How will you evaluate the effectiveness of the plan, i.e., how will you know it is achieving the desired result?


This is a strategy by which assessment of individuals and their organizations majorly influence payment and bonuses given to employees, (Passing the big test: Calibrating performance).  Yes, I will have a performance pay program which will comprise of the following;

Setting the culture which supports performance pay programs and management that is ready to change towards performance pay. Setting goals for performance pay such as improved recruitment and employee retention in the technical service department, increase the rate of individual and employee performance and lastly improve fairness in compensation to achieve employee satisfaction.

Who to pay for performance. All employees who work hard to attain good results will receive a salary increment, employees at the top levels like the sales managers and employees who are at the frontline like the technical service specialists

The timing for performance pay implementation. This will be done at different stages where employees who do exemplary work are rewarded for example in the technical service department. Other performance pay will be added on salaries of the technical service workers at the end of the month

What to reward. Department such as accounting, finance and the technical service department which perform better. All individuals who worked as a team to get exemplary results will be rewarded.

How the employees will be rewarded. The employees will be evaluated and if they perform better, for example, the technical service specialists on their specific activities then there will be an increase in term of their base pay. The pay to be awarded upon performance whereby performance pay rate will be 30 per cent of their individual salaries.

This program will help Duplox Copier Canada limited in tailoring the employees towards achieving the organization's mission and goals. This program will enable the poor performers to be persuaded to attain more results so as to get better rewards and this will benefit the organization. The average performers will end up receiving a small amount of increase and they will be persuaded by this program to do exemplary work and in return, help increase the organization's productivity, (Springer, 2009). The employees with outstanding performance will end up receiving great rewards so as to acknowledge their larger contribution and this will motivate them to continue with their superior performance. It also helps in improving the individual performance and effort which in return improves performance, (Nikolaou 2015).

Indirect payments are the benefits which are given to the employees which have financial value but is not in monetary form, (the United States, 2013). This program will help in attracting and retaining talented employees. What to include in the indirect pay program include: Health insurance, life insurance of employees, the retirement benefits, social security, laptops, company cars, mobile phone for the company, housing benefits, leave policy and leave pay, overtime payments, flexible working hours and childcare, (Hopkins &Blazek 2017).

The indirect pay program will be the same for each employee in the company in that the benefits will be calculated in their salaries as an extra component. Indirect pay program will go directly to employees for their services that they render into the organization.

How to Proceed

Indirect pay program will help Duplox Copiers Canada limited in attracting and retaining good talents and skills. This program will help retain the passive employees who are satisfied with their workers compensation but can leave the organizations if they are given better offers. Indirect pay will give the employees an opportunity to grow. This program will help in rewarding employees in a fairer way since they are the big contributors to organizations performance.

In order to implement the new compensation system, the organization needs to set clear and realistic goals so as to facilitate the implementation of the system, (Koss & society of human resource management.). The pay system should be able to fit the circumstances and needs of Duplox Copiers Canada limited. The organization should first be ready for the new compensation system in order to facilitate its implementation. The organization should obtain enough funding so as to ensure fairness before the new compensation program is put in place. The organizational culture should be changed in order to fit the new compensation system. There should be a good alignment between the human resource and the new compensation system. This alignment should be in terms of recruitment, selection and performance assessment of the employees, (Bolle & Shayler 2017). Strengthening and putting more attention in the human resource system will help create a performance-based system which will help in making the organization to be more effective.

In moving the employees into the new plan The sales managers and the four field service managers (supervisors) need to play a major role in performance settings by translating the goals of the organizations into the objectives that employees need to achieve. In order to move the employees well into the new system, the organization will have to get a high level of supervisory knowledge. The managers pay will be linked to how well they perform their duties in terms of managing the employees in the new compensation programs.

The new compensation plan will be communicated to everyone through training whereby every supervisor and employee will be informed about their duties. Through training, the employees will able to know the rules and procedures under which the new system operates and this promotes a shared understanding between the supervisors and employees in terms of outcomes and behaviours.

In order to evaluate the effectiveness of the new compensation plan, I will measure the attitudes of employees in terms of motivation and engagement. The other thing is to track and analyze the employees’ outcomes in order to determine how the new compensation plan is affecting the employees in terms of satisfaction and performance. This will help the organization in assessing the progress in relation to the organization success with the new compensation plan, (McDavid, Huse & McDavid). The other way to assess the effectiveness of the plan is to look at the employee turnover rates if there is improvement or decline especially in the part of technical service specialists.


Bolle, D, B.  and Shayler, L (2017). The double games of participation: Pay, performance and culture.

Hopekins, B, R., and Blazek, J. (2017). Private foundations: Tax laws and compliance, Fourth

edition 2017 cumulative supplement.

Koss, S and society for human resource management, U.S. (2008). Solving the compensation

puzzle: Putting together a complete pay and performance system.

McDavid, J.C, Huse, I,Hawthrone, L.R,  and McDavid, J. C.( 2013). Program evaluation and

performance measurement: An introduction to practice.

Nikolaou, N.(2015). Transparent enclosures: Design strategies free from shells

Passing the big test: Calibrating pay and performance. (2015). Aligning executive compensation

with business performance, pp, 157-158

Springer, M. G. (2009). Performance incentives: Their growing impact on American K-12

education. Washington, DC: Brookings institution press.

United states. (2013). VA health care: Actions needed to improve administration of the provider

performance pay and award systems: report to congressional requestors.

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