Effective Management Solutions Company’s Hiring and Variable Pay Plan

Subject: Employee Management
Pages: 8
Words: 2089
Reading time:
8 min
Study level: College


This paper will focus on the hiring and variable plan developed by Rodriguez in order to enable EMS to achieve its objectives. Effective Management Solutions (EMS) is currently being faced with a challenge of high job turnover. This program is aimed attracting new applicants and reduction of turnover rates among the current employees. This paper will analyze the effectiveness of HVP program from both attractiveness and motivation perspective.

Overview Summary

Effective Management Solutions (EMS) is currently being faced with a challenge of controlling the rate of job turn over. There are 25 acquaintances currently in every practice section within the firm. Every year, approximately five acquaintances are recognized by the organization through promotion. However, EMS is faced with turnover rates of approximately 40 associates annually. This can be attributed to the benefits and incentives that the Company offers to its associates. Incentives such as bonuses and salary increment enable an organization to meet its objectives. Employee motivation is accredited to better benefits and wages. Employee motivation enables an organization to retain and promote productivity among its workforce (Mathis & Jackson, 2010).

Effective Management Solutions will be required to hire 60 new acquaintances annually to meet their goals. Better remuneration reduces retention and hiring costs incurred by the organization hence increasing profitability. In order for the consulting firm to meet the set goals, it will need 100 associates annually. This has led to the development of a new plan termed as aggressive growth arrangement by the consulting firm. Therefore, the approach by EMS to develop a hiring and variable plan is likely to facilitate achievement of the firm’s objectives (Mathis & Jackson, 2010).

Attractiveness of HVP program

The greatest success and competitive factor are the ability for an organization to motivate its employees and attract new applicants. One of the major strategies to increase employee productivity and performance is implementation of a reward system plan.

The HVP program is in a broader perspective a reward system plan aimed at increasing motivation and employee attractiveness. One of the best attracting factors of this program is its capability of offer a wider variety of the incentive package plan. The hiring and variable plan will enable job receivers to choose the plan that best fits their capability. The high standard plan within the program will enable EMS to attract individuals that are highly qualified. This is because of the upside fiscal prospective provided by two of the proposed plans (Mathis & Jackson, 2010).

This program provides individuals with an opportunity to make their own decisions from the choices provided rather than being restricted to one choice. As a result, the program enables individuals to participate in flexible decision making process. HVP provides potential employees with an opportunity of evaluating their capability to fit in any of the plans provided. Employees have the mandate of choosing the best plan which they are comfortable to work with upon the official receipt of an offer (Mathis & Jackson, 2010).

HVP attractiveness can also be evaluated to reduce work monotony. Employees are allowed to shift from one plan to another after a period of two years. This option will enable employees in the consulting firm to compare the best incentive plan that best fits their demands. The program gives employees and applicants an opportunity of earning competitive wages within the market environment. The HVP program is likely to attract job receivers because of its flexibility. This is because job applicants are highly motivated by the wages and benefits that an organization offers despite the conditions involved (Mathis & Jackson, 2010).

Effectiveness of the Program in Increasing Job Acceptance

The fundamental factor that facilitates job acceptance is the incentives given by an organization to its workers. Effective Management Solutions provides potential employees with a munificent benefit package compared to other consulting firms within the business environment. Applicants reject job offers at EMS because of their current incentive plan. HVP program enables job receivers to get bonuses on top of the starting salary. Given the fact that most individuals reject EMS offers due to lack of an upward pecuniary benefit, HVP program is likely to increase job acceptance. Incentives such as bonuses motivate employees hence reducing resistance and negative attitude towards work (Mathis & Jackson, 2010).

This program provides three different plans that fit all categories of applicants. Applicants will be required to choose from any of the three which is likely to increase job acceptance. This can be justified on the perception that the program provides a wider variety of preferences that employees can choose from. Unlike the previous program where applicants were limited to confer to one plan, HVP provides three plans. The program offers a competitive benefit packages compared to other consulting firms. Therefore, HVP is likely to attract more applicants and increase job acceptance among the applicants (Mathis & Jackson, 2010).

Reduction of Job Turnover

In most organizations, the rate of job turnover can be attributed to lack of motivation among the employees. Employees are motivated by the incentives that an organization offers in return for hard work. HVP program is likely to reduce job turnover because of its flexibility and competitiveness. This program provides offer receivers with three plans that can be termed as competitive within the business environment. Since most employees leave their current jobs in search of better incentives, this plan is likely to reduce this tendency. The high and standard plan enables job receivers to participate in bonuses based on their performance. Therefore, employees are likely to get motivated and increase performance in order to get higher benefits (Mathis & Jackson, 2010).

Flexibility of the HVP program is another factor that is likely to contribute to less turnover rates. The high and standard plans provide job receivers with an opportunity to negotiate with the human resource manager. This allows room for negotiations and sharing of ideas between the employer and the employee hence increasing mutual interaction. Negotiation will enable the management and the employee to discuss issues relating to wages. As a result, employees will be capable of airing their opinions hence reducing job turnover (Mathis & Jackson, 2010).

HVP program gives the current associates an opportunity of participating in the annual bonus. The program also allows associates to shift from one plan to another. This is likely to reduce monotony of working under one program hence reducing the turnover rate. This program gives a clear detail of the payments that will be made once an employee is offered the job. Incentives such as bonuses facilitate positive attitude towards work especially when employees are allowed to choose from a wider variety of plans.

Given the fact that most employees are motivated by incentives, HVP program places EMS at the best position to mitigate job turnover. However, since the program does not address rapid promotions, which may be the most likely motivating factor of other individuals, it may not reduce turnover rates. Some individuals aim at serving senior positions within the organization hence when an opportunity comes along they are likely to quit the job (Mathis & Jackson, 2010).

How current associates will react to the HVP program

HVP program provides the current associates with an opportunity of switching to the new plan or remaining to the current one. The current associates will be required to stay or shift to the new plan but with the same salary. This program is likely to have both positive and negative perceptions from the associates. Current associates are likely to react positively to this program given the fact that they will participate in sharing of the annual bonus. This will increase motivation among the employees because the program offers significantly better benefits than the current one (Mathis & Jackson, 2010).

Current associates are likely to react positively to this program given the fact that it recognizes their efforts. Employees are entitled to bonus sharing depending on their performance as per the new program. Since performance will determine the share of the annual bonus, employees are mandated to work hard in order to earn more. Current associates are likely to increase their productivity in order to increase performance of the firm. As a result, employees are likely to have a positive attitude towards work hence viewing the program as beneficial (Mathis & Jackson, 2010).

Current employees are also likely to perceive this program negatively. This is because the program limits them to the current salary. Thus, likeable beneficiaries of this program are the new entrants compared to the current associates. This may facilitate the development of negative attitudes towards the new entrants. Therefore, HVP may lead to lack of coordination within the business environment on the notion that this program will create unfairness (Mathis & Jackson, 2010).

Issues and problems the HVP plan will create

One of the major issues that this program will create is conflicts of interests among the employees. The current associates may view the program as unfair since it does not increase their current salary. This discernment may lead to lack of synergy and conflicts within the business environment. Conflicts are a serious challenge for every human resource manager because they lead to lower productivity among the employees. Therefore, the human resource manager will be faced with a major challenge of ensuring coordination among the employees despite their current salary differences. The human resource manager will be required to find strategies that will facilitate conformity towards organizations common goal (Mathis & Jackson, 2010).

HVP program requires employees to choose the plan that fits their capability. The human resource manager will be faced with a major challenge of determining a common motivating factor upon low performance. This is mainly because the HVP program may be out looked as a general rousing factor. On the other hand, it will be difficult for the human resource manager to identify the right individuals to promote incase of replacements. This can be attributed to the expected high productivity among the associates (Mathis & Jackson, 2010).

The hiring manager will be faced with a problem of determining the right individuals to hire. In a closer perspective, the high risk and standard risk programs requires individuals that can perform. Therefore, it is expected that this plan will attract well trained individuals hence leading to competition for the job offer. This will bring challenges to the hiring managers in identifying the right and capable individual to match the job description (Mathis & Jackson, 2010).

Changes in the HVP program

One of the fundamental changes that need to be done in the HVP program is the incorporation of a plan that increases salaries of current associates. HVP program only allows the former acquaintances to switch to the new plan at their current salary. It will be crucial for the firm to allow the current consultants with wages below market standards to shift to salaries that are above the market pay. The current associates are well experienced individuals that need to be motivated through salary increment. This will reduce conflicts of interest and unfairness within the organization (Mathis & Jackson, 2010).

HVP program needs to address in the criteria and the benefits of promotion. Some applicants are motivated by holding senior positions within the organization rather than the salaries and benefits provided to them. This will enable associates to understand the due process for promotion and what it takes for one to qualify as a leader. As a result, EMS employees will increase their productivity towards meeting the organizations goals rather than their own goals.

In order to increase motivation in all plans, the low risk plan needs to provide individuals with an opportunity to participate in the annual bonus share. However, this should be slightly lower than the standard plan. This way, the three plans, will be more attractive to both new applicants and job recipients (Mathis & Jackson, 2010).


Effective Management Solutions is currently being faced with elevated job turnover rate annually. The development of HVP program is likely to overcome this challenge because of the improved benefits under the plan. This is mainly because most associates quit their current job in search of opportunities that offer an upward fiscal potential. HVP program gives job receivers a chance to choose the best plan that best fits their capability and demands. Since this program instills on motivating associates, productivity is likely to be high. This will enable the firm to gain the set goals due to reduction of job turn over and increased performance. Therefore, this program places the consulting firm at a competitive edge within the business environment.


Mathis, L. R., & Jackson, H. K. (2010). Human Resource Management. Florence, KY: Cengage Learning.