Base Pay Essay

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Dear Payroll Department: Enclosed is the report entitled Justification Report: Base Pay. It was written during a three month period. Copies of this report are simultaneously being submitted to company executives for evaluation. Upon review, the original copy of this report will be catalogued electronically in the company drive, for all employees to view. We appreciate the time that have devoted to us. Sincerely, CONTENTS: TITLE PAGE LETTER OF TRANSMITTAL EXECUTIVE SUMMARY I. INTRODUCTION II. OVERVIEW OF ALTERNATIVES III. CRITERIA IV. METHODS V. EVALUATION OF ALTERNATIVES VI. FINDINGS AND ANALYSIS VII. RECOMMENDATION REFERENCES i. ii. iv. P. 1 P. 1 P. 2 P. 3 P. 3 P. 4 P. 4 P. 5 Executive Summary Recently, a pay change was implemented, rendering all sales employees to be wholly commissioned. This was met with two alternatives, involving the inclusion of hourly or salary base pay, plus commission. These alternatives were judged, based upon five criteria that represent each alternative’s overall effectiveness. Test markets were created to evaluate each alternative, with respect to each criterion. The findings were analyzed to formulate a recommendation that is in the best interests of the whole company. Justification Report: Base Pay Introduction Problem Statement Our sales force is currently commission-based sales people. They do not receive a base pay. Previously, these sales people have received an hourly base rate that would be paid out, depending on the number of hours worked in a given pay period. This hourly base was removed in efforts to increase sales productivity amongst the sales force. This change has impacted employee morale, due to the abrupt nature of the pay structure change. Also, customer service ratings have declined since the change. In addition, staffing has now become a much larger issue than it has

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