Question

As you have made more decisions regarding the delivery drivers, you now turn to another important human resource function: compensation.

Is there a need to change how employees are rewarded? If so, what would it be?

Answer 1

When considering changes in the reward system for employees, two potential approaches are effort-based and cost-based incentives. The choice of approach depends on company goals and priorities.

Step-by-step explanation:

When considering whether to change how employees are rewarded, it is important to assess the effectiveness of the current compensation system. Two potential approaches to consider are:

1. Effort-based incentives: Rewarding employees based on the effort they expend in their work activity. This would motivate employees to put in more effort and potentially increase productivity.
2. Cost-based incentives: Rewarding employees based on the costs they incur in their work activity. This could include expenses related to transportation or other resources, encouraging employees to be more cost-conscious.

The choice of incentive approach would depend on the specific objectives and priorities of the company. If the current system is not effectively motivating employees or aligning with company goals, exploring alternative approaches may be necessary to drive desired behaviors and outcomes.