Reference no: EM132078767

As the chairman of the board, when looking over these salaries, consideration should be given to determining compensable factors. It is very important to reward the top performing employees to ensure that they stay in any organization. Medical professionals are very important in this nonprofit organization so they should be well compensated. In my opinion financial reward is very important for the employees with good performance reviews to retain them in the organization. Employees would not get enough motivation if the high performing and mid employees are rewarded the same level. When companies consider employees for rewards, high performing employees should be rewarded slightly higher than the mid performers. Because the company is passing through a rough time, employee support is essential to better the situation. It will be difficult to achieve employee satisfaction without rewarding financially. The chairman of a nonprofit organization should approve rewarding employees financially within the budget but should also consider rewarding employees according to performance rather than providing the same percentage to all employees with a good review.

Milkovich, G., Newman, J. (2016). Compensation (12th ed). New York, NY: McGraw Hill.