For Parts 1 through 4, describe appropriate incentives to attract people to work in the jobs described below and reward or punish their performance. Before you respond, please also consider the following:
Incentive intensity
Uncontrollable risk
Risk premium
Weighted average for balanced incentives
Reward
Punishment
1. Bath fitters, Inc. design and install replacement bathtubs and shower fixtures in private homes. The fixtures and installation come with a lifetime guarantee. What are the best ways to attract and incentivize the technicians who do the installations?
2. Big Wave Data Security Corp. is a consulting firm for corporations that advises, sets up and monitors systems to protect client data as well as the personal data of the clients’ employees. Big Wave’s data security consultants set the highest priority on avoiding errors and breaches of data security. As the consultant monitors the client’s data and uncovers vulnerability or violations of client information security policies, the consultant must report these issues to client management immediately, recommend resolutions, and implement them properly. What are the best ways to attract and incentivize Big Wave’s data security consultants?
3. Hayward Pharmaceuticals, Inc. invested in an HR dashboard to track recruiter activity. The dashboard gives the recruiter as well as the recruiter’s manager immediate feedback on
a) the number of open requisitions the recruiter is working on,
b) average time to hire for the year,
c) average cost per hire for the year,
d) promotion and retention rates of the recruiter’s new hires over a three-year period, and
e) total new hires for each recruiting source.
To date, recruiters earn a straight salary. What type of incentives would make the job more attractive and encourage better recruiter performance?
4. Dynamic Media develops and manages social media marketing campaigns for corporate clients in the entertainment industry. Marketing representatives work with clients to determine their needs, develop marketing strategies, and track and report campaign data to them. Dynamic is a relatively new and small company and would like to expand to become a major source for these services in the entertainment industry. Dynamic sees its marketing representatives as the main interface with clients and wants to get the best talent in these positions. What incentives would you suggest to attract top talent to be marketing representatives and encourage them to meet Dynamic’s goals?
