Reference no: EM133406630

Case Study: You have recently been appointed as the Human Resources Analyst at Apex Telecommunications Limited (referred to as Apex going forward) effective 15th January 2023. You report to the Human Resources Manager, who in turn reports to the CEO. Your head office is located at Markham, Ontario and all your employees are only based in Ontario, Canada. Apex provides Mobile Phone and Internet services and has been growing at a CAGR of 15%, since its inception about 5 years back. Basis discussion with your Manager, John Doe and other functional managers, and review of HR Policy documents you become aware of the information listed below -

Apex consists of the following teams:

Sales Executives: 80 employees, Base Pay for all employees - $14.80/hour (Standard Role and Same Title for all Sales Executives)

Sales Managers: 20 employees, Base Pay - $22.50/hour to $25.50/hour depending on Skills and Experience

Operations: 15 employees with multiple functional titles, HR, Admin and Finance: 10 employees , Marketing: 4 employees. (The Base Pay information for Non Sales employees is not available to you).

All employees of Apex are eligible for -

Vacation Days - 3 Weeks on Full Pay, per annum
Vacation Pay in lieu of vacation days, in case not availing Vacation Days as per point 1) above
Option to buy a Company SIM card at 20% discount on Market price
Option to buy an i-Phone once in 2 years at 20% discount to the Market price
Annual Payout of up to 10% of Annual Base Pay for all Employees except Sales Executives. This payout is based on annual performance ratings which in turn are based on Goals for the year. This payout can be zero as well in case of not meeting performance goals.
Up to $5000 incentive per quarter, subject to achievement of assigned targets - Only for the Sales Executives. Even if a Sales Executive misses the target for a quarter, they can make it up in the next quarter and be eligible to earn up to $20,000 annually in total.
The company has a policy of paying the Sales Executives incentives only at the end of the year and NOT every quarter.
Healthcare Expense reimbursement - Expenses up to $200 per month covered for all employees from day 1 of joining
Long Service Awards - $1000 after every 3 years of service for all employees.
Skills Upgrade Trainings after every year of Service sponsored by the organization. Every employee can attend up to 2 training programs in discussion with their Supervisors.
Last year, 2022 was not a very good year as the Sales Revenue grew only by 6% as compared to 2021 and you were informed that only 40% of the Sales Executives met their annual targets. However, the Apex Management maintained its 10% of Annual Base Pay payouts policy for all employees except Sales Executives based on their Performance Ratings (Point 5 above).

Your Manager, John has asked you to prepare responses to the below 5 points for review by the CEO, using the information given above -

1) Design a document using a "Total Rewards" approach for the Sales Executives and classify all the rewards that the company offers them with the correct definitions and criterion listed clearly.

2) The Employee Turnover % per annum for Sales Executives has been slightly above 30% in 2022 and was below 15% in 2021 and 2020. Using Motivation Theories and the information in the case above, please provide a possible explanation for this trend. You must use at least one Process Theory and One Content Theory of motivation to provide a possible explanation for increased employee turnover.

3) Base pay of Sales Executives - Do you recommend any change? Why or why not ? Please explain you rationale.

4) Incentives for Sales Executives - Do you recommend any change in the amount or the payout process? Why or why not ? Please explain you rationale.

5) Please provide the complete References / Sources of the Information (Website Links / Book References) for the above points