Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.

-What type of individual pay incentive plan would best be implemented for the Hardware Tech category of employee?

Question

Brent was sitting in his office feeling disillusioned and taken advantage of by his employees. He had just learned that his two most trusted employees had been caught stealing computer parts on almost a weekly basis for the past year. When he started his computer repair and upgrade business 10 years ago, he did all the work personally out of his basement. As the business grew so rapidly through word of mouth advertising, he finally opened a store front for his business three years ago and hired eight staff to perform the various functions required to operate his small business. His Office Manager handled the day to day bookkeeping, purchasing, and supervision functions. He had one staff member (Sales) handle sales and invoicing. Another staff member (Inventory Control) was responsible for inventory control as well as shipping and receiving. Two employees (Hardware Techs) were focused on hardware computer repairs and upgrades. The final three employees (Software Techs) focused their time and attention on software installation, repairs and some basic programming. In designing his compensation system, Brent thought the job value to the organization were as follows and paid them accordingly:
Highest to Lowest Paid:

Office Manager (Straight Salary)
Software Techs (Hourly wage)
Sales (Base salary plus commission)
Hardware Techs (Hourly wage)
Inventory Control (Hourly wage)

When the employees were hired, Brent told them in the future that he would consider implementing other incentive plans. He had been so busy with running and overseeing the growth of the business, he had not yet had time to consider his options on incentive plans. Now, he was wondering what to do about the two Hardware Techs that had been caught stealing computer parts. He thought their behaviour might have something to do with their fairly low hourly wage. He had also heard that the Hardware Techs were surprised that the Software Techs were paid more than they were paid.

-What type of individual pay incentive plan would best be implemented for the Hardware Tech category of employee?

Quizplus · Accepted Answer

Production bonuses would be the best choice for Hardware Tech category of employees as it rewards them for their productivity and encourages them to work efficiently. Commissions may not be suitable as they relate to sales or revenue generation, which may not be their primary responsibility. Employee stock ownership plans, executive incentives, and profit-sharing plans are geared towards higher-level employees and may not be relevant for this category of employees.

Brent Was Sitting in His Office Feeling Disillusioned and Taken