Introduction
Creating the compensation system that works, i.e., leaves the employees satisfied and permits a flexible financial strategy for a company operating in the environment of the global economy, is beyond complicated. The necessity to take the needs of all stakeholders into account sets a company on the crossroads between investing in the employees’ professional growth and designing the tools that will make the company recognizable in the target market.
CustomInk, however, seems to have designed the approach that provides leeway for sustainable usage of the available financial resources. However, the fact that the company is not associated with any trade unions shows that entrepreneurship may face certain issues when addressing the needs of its staff and, therefore, experience a rapid drop in employee satisfaction rates.
Special Groups: What CustomInk Has to Offer
According to the existing definition, special groups in an organization include corporate directors, top management executives, supervisors, professional employees, etc. (Locke, 2013). CustomInk provides compensations for some of the above members as well; for instance, directors and professional employees may receive compensation in accordance with the corporate policy.
However, these are primarily employees that are entitled to repetitive compensations, which entrepreneurship is so famous for in the contemporary business area. The organization, however, seems to focus on the needs of the staff members, which aligns with CustomInk’s philosophy. Indeed, according to the firm’s standards, the employees should be viewed as the primary asset and the essential HR resource (Philosophy, 2016).
Role of Unions: Negotiation and Research
When considering the role of trade unions in the identified environment, however, one must admit that CustomInk’s current compensation system is rather flawed. The lack of any connection with the existing trade unions makes a case for some of the staff members being underrepresented in the company. More importantly, the unavailability of trade union membership for the CustomInk members may become the premise for the workers’ rights abuse. Although the firm has been showcasing a prime example of meeting the needs and requirements of its staff so that the person could be motivated and loyal, the lack of any connection with trade unions whatsoever makes the people involved rather vulnerable to the external factors such as the possibility of staff reduction.
Therefore, it is imperative that CustomInk should reconsider its approach toward the connection with trade unions. Unless a proper way of safeguarding the staff’s rights is introduced into the company’s compensation system, the rates of employee loyalty are going to drop inevitably. It is strongly advised that the entrepreneurship should consider making its current laissez-faire policy concerning the management of its HR resources with the needs of the staff and the threat that the contemporary economic environment has in store for them.
Extraordinary Compensation
At present, there are no features of the compensation framework created by CustomInk that invite any possibility for extraordinary payment. Moreover, recent news about the company and its evolution in the environment of the global economy have shown that the firm asked its staff members to defer compensation at some point due to the financial issues and the changes in the overall design of the entrepreneurship’s communication framework:
Katz and Christensen drew no salary for months, and other employees were asked to defer compensation. Jessica Leiser, now CustomInk’s general manager of order operations, was among them. She started working for the company fresh out of college in November 2000. (Unger, 2012)
On the one hand, the above attitude toward the staff members, as well as their needs and requirements, is far from being positive. On the other hand, it could be argued that the above measures were the only choice that the company could afford at the time in order to maintain its position in the global economic environment and, therefore, retain its assets and resources. Seeing that the latter are distributed with the needs of the employees in mind, the choice to delay compensation payments for the specified time period so that the further financial issues could be prevented must have been a very sensible step to take.
Compensation System: Evaluation
As the description of the key options that the CustomInk Company has to offer to its member’s shows, the firm has developed a rather elaborate and reasonable approach toward providing its staff with compensations. The current framework invites a range of options and can be defined as very flexible. As a result, the primary needs of the people involved are satisfied, and the people involved feel comparatively grateful to the company and its leaders (Hassan et al., 2013).
However, the framework designed by the entrepreneurship also has a significant problem, as the significance of cooperation with trade unions has been overlooked. Despite the fact that no need in introducing the influence of trade unions to the environment of the CustomInk Company has emerged yet, the lack of support from the above organizations may affect the people working for entrepreneurship to a considerable extent. Particularly, the members of the firm may experience an infringement of their rights in case of a conflict between the organization and its members. Without decent support, the employees working for CustomInk face the danger of being underrepresented and, thus, may fail to prove their point, thus, suffering significant financial damages.
The compensation system, therefore, can be considered rather efficient yet
With the above information in mind, the leaders of CustomInk should reconsider the current compensation policy by gearing it toward a more employee-friendly design. First and most obvious, a close connection with trade unions must be established. In addition, employees should be encouraged to become members of trade unions. The above objective might become quite a challenge due to the fees and the extra responsibilities that the membership implies. However, by clarifying the significance of trade unions to the staff members, the managers of CustomInk are likely to make the idea more popular. As a result, an impressive increase in employee security rate and the company’s trustworthiness is expected.
Conclusion
While the current compensation policy used by the CustomInk organization might seem flawless on the surface, a deeper analysis will help discover that the firm may have some problems when it comes to addressing the role of trade unions and the extraordinary compensation elements. It could be assumed that the current approach toward managing the compensation process is based on the leadership approach adopted by the company. Because of the increasingly large supply chain, entrepreneurship needs to introduce the elements of laissez-faire leadership style, which does not create many prerequisites for the development of an efficient HR management system and, therefore, is likely to prevent the entrepreneurship from increasing the staff satisfaction rates.
Reference List
Hassan, M., Hassan, S., Khan, M. F. A., & Iqbal, A. (2013). Impact of HR practices on employee satisfaction and employee loyalty: An empirical study of government owned public sector banks of Pakistan. Middle-East Journal of Scientific Research, 16(1), 1-8.
Locke, R. (2013). Reassessing the basis of corporate business performance: modern financial economics’ profit control versus integrated people and process improvement. Real-World Economics Review, 64(2), 110-124.
Philosophy. (2016).
Unger, M. (2012). A focus on culture brought e-tailer CustomInk to $115 million.