Case: Xcel Energy Pays For Employees Who Excel Essay

901 Words4 Pages
Case: Xcel Energy Pays for Employees Who Excel Case: Xcel Energy Pays for Employees Who Excel Nicolette Van Havel Kaplan University AB203: Human Resources Management Professor Ted Lahne September 20, 2011 Case: Xcel Energy Pays for Employees Who Excel Introduction Xcel Energy, an electricity and natural gas company, based in Minneapolis believes that rewarding employees is linked to job performance. (Noe, Hollenbeck, Gerhart, & Wright, 2009 pg 361 para. 1). With this in mind Xcel Energy implemented a rewards program that would pay employees for suggestions that were beneficial to the company. This program was so successful, it cost the company $427,000 in one year for the 6,133 ideas employees submitted. One way Xcel Energy has addressed this issue was to implement a merit-pay program. This type of program allows employers to make distinction on pay given to higher performers, both individually and as a group. This program also allows employers to reward employees for accomplishing tasks that are a one-time event (Noe, Hollenbeck, Gerhart, & Wright, 2009 pg 342 and 343). Review/Analysis of the Case /Answer to question #1 Xcel’s decision to change from paying the employees for their suggestions to a merit pay is a better strategy. Focusing on the job and getting the work done in a quick professional manner is a far better way for the company to spend money. This is not to say employees should not contribute their ideas to the success of the company, but there needs to be an overall focus to meet job performance as well as customer service. Answer to question #2 As not to discourage employees from making suggestions on ways to help or improve the company, Xcel may want to offer employees other incentives or rewards when certain number of suggestion are implemented per employee. Incentives could include a number of paid days

More about Case: Xcel Energy Pays For Employees Who Excel Essay

Open Document