One of the most effective ways to control the service and human operations in your business is to align your goals with employees’ compensation and reward plans (economic, tangible, and intangible). 

Design compensation and reward plans that meet the following goals for each function in the company (e.g., operations, sales, web design, as appropriate):

1. You want to attract and retain high quality, experienced employees to your business.

  1. You need to increase your awareness of the winery amidst the tough competition already in the marketplace.
  2. You need to decrease the number of errors that employees make at the winery tasting room, retail store, etc.


Employees today want to get the best jobs with the highest salary possible. As a business owner, you must be competitive with the businesses around you. You must know what employees are looking for so that you can meet or exceed their expectations. To meet this challenge, companies, regardless of industry and size, must craft a clear and compelling strategy for implementing a well thought-out total reward/compensation plan to attract, retain and motivate key talent. The area that companies should focus on would be total compensation, benefits, work- life balance and training, career and personal growth opportunities. These are areas that employees value and look for when they are looking for a job. Employing more qualified workers leads to better results, including higher productivity and customer service interactions. This can increase your company’s revenue and help your business establish its identity with consumers (Lister 2017).

Competition is everywhere so you must set yourself apart from everyone around you. This can be done in several ways. Advertising can be conducted in many ways. Today, the best way to do it is through social media. There are millions of potential customers on social media. Social media is the largest marketing tool in the world.

Employees are going to make mistakes. However, training is the best way to decrease the number of errors that an employee makes. Training should be a priority for any business. Training helps ensure that your employee is aware of how operations are conducted daily. Incentives are another way to decrease the number of errors that employees make. If the employees know that they will earn rewards for what they have done correctly, then they will continue their hard work. Training will clearly inform your employees what you are expecting from them. The training you provide must be what they will be doing on the job.

Answer 2

A business owner should understand the importance of compensation to remain competitive in the market because an effective compensation strategy motivates current employees and is used as a tool to attract new ones.

Employees’ compensation packages in businesses play an important role in the company’s ability to attract top talent as job candidates and these top talents when they finally become employees, greatly impact the competitiveness and productivity of the business. Having compensation like good salary or wage plus other benefits such as work life balance, health or life insurance, training, career and personal growth opportunities, will motivate the employees and make them want to stay.

A smart HR manager should know that apart from making profit or being competitive in the most obvious ways like selling or producing better products, buy better equipment and invest in more lucrative locations, that the company can beat competitors with a good compensation plan. Reducing employees’ salary might not really help the business to compete in the market especially when the employees have the best expertise in the sector where they are employed.  On another note, most Americans live paycheck to paycheck, a reduction in pay can mean the difference between meeting all of the employees’ financial obligations or not. However, by keeping a top performer at his full wage, salary or good incentive, the business increases its chances of surviving tough times in a competitive market.

Errors are bound to happen even among top performing employees. One of the best ways to reduce this is to hire the right people for the right position. Spell out critical duties, roles and responsibilities of a specific job (Abrams, n.d). Providing in house training to upgrade and update the employees in their different positions. This will make employees feel motivated, avoid errors and help the company succeed.

In all, employees want to be well compensated for the job they do, both for their self-esteem and as a practical means to living. Retaining employees saves companies money in training costs and helps maintain an efficient and knowledgeable workforce and this can only be achieved by having good compensation plan.