Compmanagement Case 2
Elisabeth Schauer
Compensation Management
Case Two
2/17/15
Kyle Evans at Ruffian Apparel The Ruffian Kelowna store hadn’t have a capable store manager for a couple of months and their sales were not very impressive so the store decided to hire Kyle Evans to be the regional manager and to make some changes in the store. His job was to get the store back on track. The store had this expectation of making sales called Extreme Customer Service which meant the employees were supposed to go above and beyond for the customers need and making them have a pleasant experience shopping at their store. Employees were paid differently and had different sale goals depending on if they were full-time or part-time. Part-time employees start at minimum wage with a four per cent commission fee while full time employee salaries can range from 9 10 12 dollars an hour with a commission rate being two cents per sales. Since Kyle Evans is a manager he was placed on salary and can’t make commission on their sales. The salaries are negotiable and depend on seniority along with the store size. The problem in this case is that Ruffian Kelowna stores can’t keep their employees since they don’t have competitive salaries and have an unrealistic compensation program. Their turnover rate for employees is high which then leads to the store not meeting the sales requirement. Kyle Evans is in charge of making changes and solutions to these problems. The compensation program is unrealistic because the stores commissions are for employees that are based in larger stores in Vancouver which is a major city and their commission requirements are much more attainable. In Kelowna the employees can rarely reach their requirements for the compensation which shows that the sector cannot reach the commission quotas. Some alternative solutions to these problems are to try and keep some of the same employees and to promote within. If you can try and keep the store manager to stay then you wouldn’t have to
Compensation Management
Case Two
2/17/15
Kyle Evans at Ruffian Apparel The Ruffian Kelowna store hadn’t have a capable store manager for a couple of months and their sales were not very impressive so the store decided to hire Kyle Evans to be the regional manager and to make some changes in the store. His job was to get the store back on track. The store had this expectation of making sales called Extreme Customer Service which meant the employees were supposed to go above and beyond for the customers need and making them have a pleasant experience shopping at their store. Employees were paid differently and had different sale goals depending on if they were full-time or part-time. Part-time employees start at minimum wage with a four per cent commission fee while full time employee salaries can range from 9 10 12 dollars an hour with a commission rate being two cents per sales. Since Kyle Evans is a manager he was placed on salary and can’t make commission on their sales. The salaries are negotiable and depend on seniority along with the store size. The problem in this case is that Ruffian Kelowna stores can’t keep their employees since they don’t have competitive salaries and have an unrealistic compensation program. Their turnover rate for employees is high which then leads to the store not meeting the sales requirement. Kyle Evans is in charge of making changes and solutions to these problems. The compensation program is unrealistic because the stores commissions are for employees that are based in larger stores in Vancouver which is a major city and their commission requirements are much more attainable. In Kelowna the employees can rarely reach their requirements for the compensation which shows that the sector cannot reach the commission quotas. Some alternative solutions to these problems are to try and keep some of the same employees and to promote within. If you can try and keep the store manager to stay then you wouldn’t have to