Reference no: EM132770362

Question

Green Space Mobile (GSM) is a wireless telecommunications provider, offering various mobile plans and devices in Canada. Currently serving over 1 million active subscribers in urban areas of Ontario, British Columbia and Alberta, GSM has approximately 1,300 employees.

As Public Mobile was scooped up in 2013 by Telus, and Mobilicity in mid-2015 by Rogers, GSM seemed to be the last remaining independent holdout. GSM is very different than the Big Three - or even its second tier brands, such as Kood o and Virgin Mobile. It doesn't offer Long-term Evolution (LTE), nor are its third generation (3G) speeds as fast as Rogers, Telus, or Bell. What it does offer is decent coverage in certain cities with occasional but frustrating pockets of poor service. Its prices are also significantly cheaper, especially for data, which is an increasingly desirable commodity.

The best candidates for people to move to GSM are:

• People who tend to stay within their home zones most of the time
• People who don't require ultra-fast LTE download speeds
• People who tend to doo a lot of mobile video streaming (at lower quality)
• People who want to use cellular data to upload photos and videos in the background

The following were communicated at the recent all employee town hall meeting, ahead of the next performance review cycle:

Continuously evolving how we serve our customers by knowing them and anticipating their needs

Providing value based on products and services delivered through efficient processes

Sustaining growth oriented long-term investments

With the sustained growth in a very tough competitive telecommunications market, and to cope with the geographical challenges, GSM launched a successful company-wide recognition program called "MVP", allowing managers to award employees points that can be redeemed for prizes ranging from gift cards to iPads to vacations.

Though the program is optional, GSM saw 92 per cent of its staff sign on in its first month, and several years later, employees continue to use the plan gave co-workers "virtual pats on the back".

However, since that time, GSM has been experiencing serious performance problems:

• Employee turnover is up 15% from 2018;
• Key themes from the recent employee pulse survey indicate growing dissatisfaction of fairness between pay and job responsibilities, as well as an increasing concern about how pay decisions are made;
• Customer satisfaction is down by 12% and complaints are increasing; plus
• The 2020 forecast revenue and profits are trending down to less than 1% year over year growth, far lower than the revised planned 6% growth after the start of the pandemic.

The company's Vice President of Human Resources knows that compensation can contribute to as well as support overcoming these issues. Since compensation is a major cost, accounting for 75% of the annual expenses, the VPHR needs your immediate assistance to:

1. Explain which of the 3 levels of performance make most sense for the compensation plans to focus on in the next upcoming cycle.

2. Identify 3 to 5 key job metrics that may be used in a performance pay plan to achieve business results. Include the advantages and disadvantages of each.

3. Outline the desired employee behaviours that should be aligned with these measures in order to achieve the business results.