Compensation Analysis Document

Executive Summary

The garage is a clothing store based in Canada which started in 1975. It is a clothing store that primarily targets young women. It is located in Montreal, Canada. The working hours are between 9 am to 10 pm for the customers of garage clothing. The employees of the garage clothing are offered a high range of salary per year. They need to be skilled in their role and educated and they are happy for having a good salary and a sound working environment. Garage Clothing is having a union environment at work. Garage clothing is facing challenges in the market where they are trying to enter the business of clothing for various age groups. There is a competitive advantage for the company in which they use the ethical approach in the company. The financial conditions of the company are stable. The company was created solely for teenage girls offering them a various range of clothing. The customers of the company are mainly teenage girls who are the sole target of the company. The range of clothing offered varies in designs and other aspects which create hype in the competitive world and this is the reason for the customer attraction for the products and services of garage clothing stores.

Workforce summary

A wide range of employees is working in garage clothing stores. A total of 146 employees work in the store of garage clothing in Canada and the mean age of the employees is from 20 to 40. They should be skilled in communication and fashion knowledge for taking a job in garage clothing. The average tenure of the employees is based on the skillset they possess. The management strategy of the garage clothing consists of the various steps in which they keep the interest alive, catch customer’s eyes from a range of products, provide the best services and support help, communication establishment (Yoon, et. al., 2020). This management strategy is the best for garage clothing because it is catchy and interesting which improves the retail operations, motivates employees, and attracts new customers which induce sales. The management strategy and demographics impact the compensation strategy for the organization in such a way that the employees will be motivated and the company provides about 50% discount on the products for employees which attracts and retains individuals in the serving of the company. These benefits will attract the employees to stay in the company and serve in garage clothing stores in Canada with high motivation.


Compensation analysis

The garage clothing stores have different levels of organization which include salary employees, hourly employees, and the CEO. The company has a CEO and it offers two kinds of jobs in which either it is a salaried job where the employees have to work a whole month or the other one is an hourly job where the employees are being paid on an hourly basis. The employees of garage clothing get $5 of the compensation mix which is being contributed to the base pay for the salary employees (Kadir, et. al., 2019). The hourly employees get a low amount of compensation mix than other employees. The employees also get indirect pay in which paid leaves, family holidays, various kinds of insurance like accident insurance, health insurance, etc, bonuses, incentives and many more are the forms of indirect pay which is provided to the employees of garage clothing stores in Canada. The compensation mix for the merit of employees is being provided as a benefit or perk for working in garage clothing. This includes exclusive holiday vouchers, gift vouchers, or shopping vouchers of the store with heavy discounts. This is only given based on the employee’s overall performance annually. The compensation system of the company is very important for the working style and environment of the company.

The compensation system is being measured through the satisfaction of the employees from working in the company. The management systems will know the success of compensation when the employees start to put extra effort into improving the sales and revenue of the company. The customers will be attracted and the communication establishment between the employee and customers will enhance the sales of the store and improve the benefits of the company. This will engage the company in the marketplace to have competitive advantages where it is very important for the employees to be fully motivated and involved in the management strategies and enjoy the perks and benefits being provided to them. The organization can use other metrics to measure the success rate of the compensation system being used in the company. The other metrics can include various types such as feedback forms, chit systems that are inclusive of the company and the management can get the success rate of the measures taken for the improvement and benefits of the employees through the compensation system. This will regain the trust and faith of the employees in the management and the company which will enhance the growth and development of every unit of the company.

Compensation Strategy and Alignment with the Business Strategy

Compensation strategy helps Garage company to manage the personal income of an organization and it set a clear limit for managers and staff members. It also provides the top authority with certainty. An organization needs special skills in their employees so that they can perform great work. This is the international organization which needs to follow all the required laws of the government of Canada(Fives, et. al., 2016). Thecompany aligns the compensation resources to the business objectives which help them in deciding where they want to compete. The compensation strategy also affects the company culture, staff members’ satisfaction with their job position or role, and even the bottom line.

The compensation strategy is important at a different level as it assists in enhancing the employee satisfaction level, achieve the internal and external equity, lesser employee turnover, and boost loyalty among customers and employees. In the Garage clothing company, Maslow proposed motivation needs are being met with the help of analyzing employees’ basic needs and wants within the workforce. It is a helpful theory which assists in focus on staff members’ requirement that needs to be fulfilled by an organization for increasing their satisfaction level. There are various ways through which the company can measure the importance if compensation on employee engagement such as conducting surveys, taking feedback, and responding to employees and interview sessions.


Compensation Strategy Recommendation

for the compensation strategy, it can be recommended that Garage clothing needs to analyzing the elements of the current compensation strategy that are kept because it helps in achieving potential goals and targets of an organization. This can assist in boosting employees’ morale and increase the level of performance(Zeb, et. al., 2018). The existing compensation strategy element which the company needs to change is a regular reevaluation of employees’performance which makes confusion and creates discomfort among them so that firm requires conducting reevaluation every week. The changes can help in maintaining a balance between compensation strategy and business strategy in a better manner. Accompany manager motivate workers to perform great through which they can get compensation rewards as well lead towards maintaining a business.

The changes are important within an organization as it helps in allows employees to learn new things, skills, and explores new opportunities. The described changes help in getting accurate results to the company because the evaluation method is a change that assists in giving time to the workers to improve their performance before evaluation. This can enhance their skills and performance level that are profitability for the Garage clothing. For measuring the effectiveness of implemented changes, the company can assess the skills of workers and compare the changes in their behavior.


Change Factors

Various factors will influence the change in the compensation strategy of an organization. In this, the high turnover rate of employees can resultant in low employee morale. This is important for garage clothing is to motivate their workers and provide rewards to satisfy them. Financial problems are the major influencing factors that can affect changes in the compensation strategy of an organization. For conducting the strategy, they need to maintain finance that helps encourage employees to perform great work in reaching business goals(Martin, et. al., 2019). The reduction of satisfaction level among employees creates difficulty for them within an organization where if any changes occur in the working style in a better manner. Along with this, management and employees are important for achieving business goals and this will make changes in their business operations. Garage clothing needs to make changes in the management and staff members’relationship which can help them in lead towards gaining high income and profitability.


Compensation Strategy Placement

It can be recommended that Garage clothing needs to focus on compensation strategy which helps them in motivating their employees and by these; they are satisfied with their job position. This can be analyzed that the company requires concentrating on that place where they can implement a compensation strategy. In the human resource department, they are placing this strategy as such division members can easily provide compensation and benefits to such employees who achieve a monthly goal. This is an effective placement area where the Garage clothing places the strategy and it can help in easily deliver required compensation and benefits to the potential worker in the company.





Fives, H., Mills, T.M. and Dacey, C.M., (2016). Cooperating teacher compensation and benefits: Comparing 1957-1958 and 2012-2013. Journal of Teacher Education67(2), pp.105-119.
Kadir, A.A., AlHosani, A.A.H.H. and Fadillah Ismail, N., (2019). The Effect of Compensation and Benefits Towards Employee Performance.
Martin, N. and Rice, J., (2019). Coal seam gas projects: proposed policy model for compensation and benefits sharing. Resources Policy63, p.101458.
Yoon, S. and Khan, M.M., (2020).The Effect of Organizational Values, Work-Related Compensation, and Benefits on Job Satisfaction of Home Health Aides. Home Health Care Management & Practice32(2), pp.95-104.
Zeb, A., Sultan, F., Hussain, K., Javaid, M., Abbas, Z. and Imran, M., (2018). The influence of compensation and benefits and employees’ involvement on employees’ outcomes-evidence from PTCL. International Journal of Research and Review5(11), pp.98-103.