Question

Myra's company recently decided that in order to cut costs, they needed to change their compensation structure. Currently, full-time staff persons are paid a salary biweekly and are given a bonus every year. The company president wants to continue paying biweekly salaries but also wants to figure out a different structure for paying bonuses. What can the president implement to better manage his company?

Answer 1

The company president can implement a performance-based bonus structure to better manage the company's compensation.

Step-by-step explanation:

The company president can implement a performance-based bonus structure to better manage the company's compensation. Under this structure, bonuses will be tied to individual or team performance, rather than being given on a yearly basis. This can incentivize employees to work harder and achieve specific goals, which can ultimately contribute to the company's cost-cutting efforts. For example, bonuses can be awarded based on meeting sales targets, reducing expenses, or increasing productivity.