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Question - You are hired as consultant to study and make recommendations about the giving out of incentives to all employees in the main and three branches of the company. Majority of the revenues of the firm were sourced out from interest on loan releases which include service fees and other financing charges, while other income were from rentals and other fees. The firm is very successful in their lending business and is progressing every year. They employed 30 personnel including officers and staff. 65% of the staff are receiving above minimum wage, while the other 35% are receiving within the minimum basic pay for being less than 3 years employed. Every office hours, collectors are tasked to do the collection from clients. The firm has done various strategies in collection, yet the delinquency rate was not met compare to the objective set by the firm. For instance, the present delinquency rate is 30%, management is expected to lower it by 50%. On the otherhand, the firm net income is progressing among all branches and loan releases are also increasing with the increase of number of clients. Recently, the personnel is requesting for a productivity incentives due to their positive financial performance. Cash flow of the company will slightly affected in giving out this incentives.
Required - As a consultant, prepare a proposal and recommendations. Justify recommendations.
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