Designing a reward package for a CEO is very complex requiring many variables. However, the structure of compensating the CEO, salary staff, and hourly staff should be directed to aligning the goals of the firm and adopting a common model for compensation. It is very important to identify the drivers of compensation in the company. This paper seeks to identify a reward package that includes a mix of salary, benefits, and perquisites that will motivate employees. It will balance individual and organizational needs giving rise to an optimal compensation structure.
Telus is a telecommunication company which offers telecom products and services. The company is one of the largest telecommunication companies in Canada with its head office located in Alberta. It has five branches spread across the provinces. In 2001, the company was incorporated and registered as a trademark and its main focus was to pursue opportunities in the operating systems in the telecommunication but in recent years it expanded its line to producing mobile phones. There is high competition among the various brands that produce and sell software and phones. However, Telus has invested in offering high quality products; develop greater human asset and having a customer intimacy model in place which has allowed the company maintains its competitive edge. Dominance in the market has seen the company scale into greater heights regarding financial performance. The market for telecom products is very huge because there is an unstoppable growth of the industry. The operating system technology targets two segments, tier 2 and tier 3 telecom operators. The market for phones is estimated to grow by 70% in the next two years. The number of employees has been increasing since the incorporation of the company in 2001, the majority being male though there has been a need for hiring more women in recent years. The workforce is of different age groups, but the majority are millennials who have the skills and who the company believes are very innovative. These employees have demand for a good compensation package that will motivate them to be productive.
As business keeps on changing, the approach to compensation should change as well. There is no flexibility in compensating employees based on position. Establishment of a total reward package that focuses on rewarding skills and performance has been at the top of the human resource department agendas which has to be attained. This will promote employee ownership. In coming up with this package, there are some factors that determine the policy choices in compensation.