Compensation as a Change Agent

Compensationas a Change Agent

Employee’s satisfaction is a crucial determinant of theirperformance and change in behavior. Improvement of people’sbehavior entails meeting their needs that is equal to satisfaction.Employee’s satisfaction is the gap left between their perceptionand expectations. Consequently, it is important for the employer toidentify the various ways to equate expectations to the employee’sperceptions (Nevis, &amp Lancourt, 1996).

Rewards are one of the best ways to increase employee’sperformance. For the rewards to be effective, they need to be givenas soon as possible after the employees have provided the expectedresults. Prompt rewards are sufficient since the employee remembersthe reason behind the rewards and consequently, they are prone tomaintain or change behavior. Delayed rewards are ineffective since,by the time they are given, there is a high possibility that theemployee will have forgotten the reason for the reward (Daft, &ampMarcic, 2014).

The appropriateness of rewards determines behavior change. Employersshould consequently strive to identify the most appropriate forms ofrewards for their employees. Social performance should be rewardedwith social goods same as financial results are to financial rewards.The level to which the reward is felt as personal serves to increasethe motivation of the employees. Appropriateness further eliminatesthe need for significant rewards. A reward does not need to be big tosound motivational. A small reward that is well personalized to thereason behind the reward has more motivational consequences than abig prize that is not personalized (Nevis, &amp Lancourt, 1996).

VAS Consultants is a management consultancy firm. The organizationspecializes in conducting corporate research for its clients.Research work is extensive as it revolves around developing proposalsand conducting both applied and desktop research. In addition, thefirm conducts human resource audits and strategic planning for theclients. Specifically, it entails long hours of working on researchproposals and report writing. Besides, the junior consultants areengaged in great traveling activities to the clients’ sites. Thekey required behavior for VAS consultant’s employee is theirability to meet strict deadlines. Otherwise, the firm is prone tolose its reputation with the clients. Besides, the demanding natureof consultancy assignments requires thejunior consultants to work forlong hours. The critical barriers to meeting deadlines,according toemployee’s complaints, include low motivation due to a poorcompensation plan andthe time taken by the research assistants whilethey go out for lunch. The employees take a long time walking to thecafeteria that is located half a kilometer from the offices(Beckhard, &amp Pritchard, 1992).

First, the organization can provide lunch to the Research assistantsat the workplace to reduce the time taken during lunch hour. Inaddition, it will change the employee’s behavior by improving onthe assistant’s capacity to meet deadlines.Consequently, theassistants do not waste a lot of time moving to and from thecafeteria (Nevis, &amp Lancourt, 1996).

Second, the company can change the compensation plan. The firststrategy entails remunerating employees based on the number ofresearch bids that an employee wins in a given month. The keyadvantage of the method lies in the fact that it increases theemployees’ morale to complete their tender bids since the more thebids, the higher are the chances to win. Besides, it increases theemployees speed due to their willingness to complete their researchproposals as soon as possible. In addition, it creates competitionamong the employees and fosters their ability to conduct an extensiveresearch to increase the quality of their proposals. The majordisadvantage is that it increases the costs to the firm. Besides, theapproach makes the employees to undervalue the costs in theirfinancial proposals. Lower bids are meant are in effort to appear asthe most cost effective bidders and increase their chances ofwinning. This approach is subject to reduce the profitability of theorganization (Daft, &amp Marcic, 2014).

The second approach entails increasing the overall compensation ofthe research assistants to match the industry standards. The currentunderpayment of research assistants is a major barrier to theirmotivation. They feel that they are overworked and paid lowersalaries to those prevailing in the market. Consequently, most of theresearch assistants are on the lookout for better paying employers.The organization is prone to experience a high employee turnover. Themajor advantage of the method is to reduce the employee turnover aswell as increase their motivation. The key disadvantage is theincrease in the costs to the firm (Osland, 2001).

Given the various approaches to using compensation as a change agentfor VAS Consultants, the first strategy is more effective than thesecond strategy. The consultancy firm should change the employee’sremuneration to entail the number of bids won by each employee. Thestrategy is appropriate to the firm owing to its operations. The firmis likely to reduce the income due to under bids by the assistants,however it is more liable to gain from the increase in the qualityof proposals generated. In addition, the motivation created among theemployees further implies a lower employee turnover rate and qualityresearch work for clients (Nevis, &amp Lancourt, 1996).


Osland,J.&nbsp(2001).Theorganizational behavior reader(7thed).Upper Saddle River, N.J.: Prentice Hall.

Daft,R., &amp Marcic, D. (2014).&nbspBuildingmanagement skills: An action-first approach.Mason, OH: South-WesternCengage Learning.

Nevis,E.C., &amp Lancourt, J.E. &amp (1996).&nbspIntentionalRevolutions a Seven-point Strategy for Transforming Organizations.San Francisco, Calif.: Jossey-Bass.

Beckhard,R., &amp Pritchard, W. (1992).&nbspChangingthe essence: The art of creating and leading fundamental change inorganizations.San Francisco, CA: Jossey-Bass.