Fit Stop Compensation System

Fit Stop Compensation System



Fit Stop is a new firm whose aim is to sell all kinds of fitness, training, exercise and conditioning equipment. Its core value is to provide customized and personalized assistance to all its customers. This is based on a high quality advice system where they will use specialists and professionals in these equipment’s to advice their customers on the choices they make based on their specific needs. For this reason, Fit Stop wishes to employ salespeople who are of at least high school diploma category who will be working on a full time basis for seven days a week. The sales people have to undergo in work training in order to learn on how to give customers the personalized advice they require. This paper evaluates whether base pay can be an imperative component of compensation for Fit Stop’s sale staff the factors to consider in designing the compensation system.

Base pay can be defined as a worker’s initial rate of compensation not including increase in any rate or extra lump sum. Generally, it is compensation a firm provides to its employees in exchange for them performing specific responsibilities, which can be also termed as wages or salaries. When an organization needs to establish a base pay system it has to ensure that the system is externally competitive and internally equitable. The system has to promote the firms objectives while at the same time creating a link between jobs and rewards. Another consideration to make when determining a compensation system is the objectives of the organization and how they can be achieved. There is an urgent need to motivate employees at work and one of the crucial components that determines their motivation is their compensation.

When it comes to determining base pay for a firms employees there are imperative issues that the organization has to consider. This includes the role an employee is taking on, the responsibilities they will have and the experience needed in that position. All this can be done by undertaking a thorough analysis of the kind of employees the firm wants. Firstly, the firm has to create job descriptions. These descriptions define the responsibilities and requirements of a job. These job descriptions play a major role in the creation of a compensation structure. There is also the need to conduct a full job analysis. Conducting analysis on all jobs and departments assists in determining whether tasks will be done well and aligning them in a systematic way that eradicates overlapping of duties. This is imperative as compensations is based on levels of experience and skills in performing core functions.

Job evaluation is another key factor when it comes to developing a compensation system. Fair pay is based on relative worthiness also known as internal equity. Job evaluation can be based on a job content approach or a market –based approach. It is imperative in the determination of salary ranges for various positions ensuring compensation is done fairly, based on job value. At Fit Stop, the sales people will be the driving force of the firm. This is because due to the sensitivity of customer-personalized assistance they will have to represent the firm’s image. For this reason a base pay compensation system will be quite essential but there is also a great need to consider an additional reward system. At fit stop it will be all about motivation of employees to ensure they work hard to achieve the organizational objectives.


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