The Fit Stop: Compensation Strategy


Founder Susan Superfit viewed the Fit Stop as a breakthrough endeavour. Superfit stated that the company is highly dependent on the performance of the employees. The skills and attitude that the staff will cultivate in the company is critical in the success of the Fit Stop. Since the company is service oriented, Superfit recognises the necessity to ensure that the personnel are motivated. Aside from the consistent positive views, employees need to be rewarded with ample financial compensation. This remuneration also includes perks and privileges including long terms plans for personnel enhancement and development.

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There are several challenges that Superfit considers in relation to the firm’s staff. Financial sufficiency is the most basic necessity in drafting the compensation strategy. The inclusion of required benefits and company developed perks are also important. In keeping the workforce motivated the company understands that personnel have to be developed. This means that training instruments will be developed and applied in the process of staff tenure. Emotional and psychological supports are crucial in maintaining the competence of the employees. The combination of these aspects is vital in sustaining the morale of the employees (Long, 2006).

During the course of the discussion, there are some important elements that need to be discussed. The general reason for developing the compensation plan has to be clearly stated. The plan has to include the important cycle in which the plan will be implemented. In addition, the package for employees needs to be clearly determined. The training process has to be specified with identified mechanisms to be explained further. Aside from these aspects, there are other subjects that will be provided. The structure of the discussion will be based on the concept arrived by Susan Superfit and some key personnel. The team will handle the cycle until results have been obtained.


The underlying concept behind compensation strategy is the importance of the employees in the organisation. Amit and Schoemaker (1993) mentioned that the internal resources of the company are responsible for the formation of distinct competitive advantage. Human resources are one of the internal resources that companies have. Barney (1991) explained that the interaction contribute to the promotion of competitive advantage.

Human resources that create value, rare, inimitable, and non-substitutable are vital components in sustaining competitive advantage. These characteristics define the notion that employees have to be accorded with just remuneration and be accorded with proper development.

Employees play significant roles in implementing business strategies geared towards sustained competitive advantage. In the same manner, Begin (1991) stated that strategic management deals with the initiatives that use human resources functions to assess the long-term strategies of the organisation. It also concerns the development of appropriate strategies and policies in relation with the employees. Strategic management has become an important instrument among firms; several methods were developed to successfully introduce compensation mechanisms. One of the methods used was aligning the attributes of the manager to the strategic goals of the firm.

Safety and health issues are part of the social concerns of the company. The company creates a working atmosphere that radiates safety in all aspects. As much as possible, the company works to prevent the tendencies of injuries. Aside from workplaces, the company is starting to eliminate equipments that can cause injuries. Hazardous products are disposed properly to prevent the event of contamination. The health of the workers and the safety of the consumers is an utmost priority that the company.

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The Role of Human Resources Management

The role of Human Resource Management (HRM) is threefold: to hire, to train, and to maintain. It is the task of HRM to seek for competent applicants that will contribute and make a difference once hired. In addition, HRM revolves on the creation of programs that will keep the employees loyal and productive. Through the years, this task has been expanded as HRM practitioners have been accorded the capacity to settle employee related disputes. Because HRM overlaps concerns employee welfare and empowerment, concepts such as industrial democracy and employee involvement have been viewed as HRM initiatives.

HRM policies are fundamental to the performance of firms. In planning for the organisational initiatives, companies have included HRM activities as point of discussion. From the traditional issues such as salaries and employee development, HRM has become progressive and concentrates of different aspects. In some instances, the policies on HRM have overlapped the issues discussed in other departments. Although other organisations still prefer the traditional methods, majority have already focused on revolutionising the formulation of HRM initiatives. The combination of traditional and modern styles is critical.

The development of HRM has become an integral improvement among organisations. Slowly, several organisations have realised the value of their employees. The concepts that have been developed in HRM were designed for employee empowerment. Because of this, there have been observations that the HRM concepts have been created to promote employee involvement. Most HRM mechanisms directly and indirectly address some issues that concern with employee involvement. Most individuals developing HRM strategies focus on extending the capacity of the employees to provide more contributions. HRM strategies continue to emphasise the rights accorded to employees to improve their manner of involvement especially when required.

Basic Compensation and Fringe Benefits

The strategy for the company to maintain the employees is fundamental. Employees have to be accorded with the proper compensation as mandated by the law. This means that basic salaries will start as the benchmark for the wages. Aside from the wage levels mandated by law, there are other methods to determine the remuneration of the personnel. Benchmarking is an important tool in this process. The company needs to survey firms that provide similar services. From there, the company will have an idea as to how much personnel are being paid. In addition, the company can look into the average salary of the employees in the industry where the Fit Stop is currently operating.

Apart from the salaries, there are other methods that can be used to increase the income of the employees. During busy seasons, the company will encourage the staff to work more than the required hours. Each hour in excess of the mandated time will be paid in a higher value. Moreover, employees are encouraged to work even in holidays. Working in these supposed rest days means higher rate of pay. There are also perks that the company provides for the employees. These include monetary prizes for employees that provide the best performance for the week and month. The company provides defined metrics to determine the employee that has performed beyond what is required.

The company has realised that there are other benefits that can be accorded to the employees. The company plans to cover the health insurance of the employees. This means that personnel will have sufficient support when health risks are experienced. In the long run, Super Fit will also include benefits such as life insurance. This is basic necessity but requires financial stability for the company. As Super Fit grows, the benefits provided to employees are expected to increase and improve.

Training and Other non-Monetary Benefits

The development of the employees’ skills is a vital cog in the compensation package of the employees (Long, 2006). Aside from being financially stable, Super Fit plans to make their current work as a long-term career. Training is an important investment that the company will make. Hence the need to provided quality-training modules is necessary. In essence, the performance of the employees will determine the training program.

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Employees that provide the best work will need to be introduced to new skills. On the other hand, personnel that are lagging behind will be placed in a rigorous development regimen. The training cycle will be dependent on the need of the company and the request of the employees.

The basic training provided to employees deals with customer service. The technical procedures are patterned after established processes. The core of the training model deals with skilful speaking and listening. This part of the model details the communication capabilities that employees have. The most common trait exhibited in this model is the personnel’s ability to make comprehensive requests and accountability to their actions. When change occurs, employees need to communicate their perceptions. When the discussion encounters problems, then the superior conversationalists will come into the picture to mediate the situation.

When this skill is fully developed, employees become more committed to speaking and listening. Changes are easily delivered because employees will listen first and speak later. There is transparency in terms of discussing the effects of such change. To achieve this level, it is important for firms to conduct leadership conversations. Some of the tools also used include dialogues and action research. The other elements to reach this level promote installation of core values and creation of behavioural inquiry. Each of the mentioned tools is as important as the others hence completion is critical.

Promotion and Motivation

Performance evaluation is an important part of the compensation strategy (Long, 2006). The process is divided into three parts. The first part entails the documentation of performance as registered by the employees. Metrics such as quality, efficiency, and attendance will be highly graded. Quality refers to the value provided by the employees in their respective responsibilities. This is primarily determined by the customers who are suggested to fill out survey forms after a service is provided. Efficiency pertains to the level of work provided in a given period of time. The attendance is basic and employees just need to come to work without reservation.

Each month, employees meet with their supervisors to discuss their performance. The supervisor will suggest ways to improve including training and other forms of reinforcement. After 6 months of work, the employee will talk with the supervisor and manager. From there the road map for the specific employee will be determined. Additional compensation will also be dependent on the metrics. When it comes to promotion, the founder will be the one announcing the development to the specific employee. The supervisors post benefits provided to the employees. When employees receive their salary for a given period, a pay slip is provided to explain the addition and deduction.

The company will also promote clubs within the organisation. Camaraderie and unity are important products of this initiative. The goal of employees in this process is to have a deep self-connection. This will allow the employees to connect with their peers. Mindfulness is crucial in dealing with changes. Having a grasp of the inner mind will allow employees to make smooth transition. Employees who have mastered their inner skills are also known to have controlled their violent behaviours. The employees can manage their tempers even at worst conditions. Moreover, it is important for employees to be in touch with reality.

Employee Democracy and Involvement

Employee involvement has viewed as an effective mechanisms used to address issues within organisations. It has been viewed that allowing employees to be more involved in organisational process reduces the negative tendencies and boosts relationships. Osterman (1994) noted that several companies have been devoting resources to push for the development of the concept. The primary scheme used to manifest employee involvement is to provide programs that enhance performance based on relationships and psychological needs. Employee empowerment is an important entity of involvement. The company needs to maintain the necessity for employees to be a part of the decision-making process.

The principle that all individuals employed in a firm has to be accorded with rights to run the company. In achieving this concept, there are several approaches that can be used. In situations where capital requirements are relatively small, it is possible that those who work in it can own a firm. In this event the workers can elect the directors and managers, and control all decisions taken. In situations where the capital required is high for this to be possible, or where the workers do not want to accept the risks involved in being owners, the workers can have a share in decisions, electing some directors.

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Industrial democracy appears to target the entire essence of organisation existence (Hodson, 1996). Moreover, industrial democracy has to be completely implemented with its fundamental goals determined. Industrial democracy captures the need of organisations to provide their trust on knowledge and personnel to achieve success. Employee participation, however, focuses on ensuring that the personnel perform beyond organisation expectations. Holistically, employee involvement is one of the vital components that are needed to be present once organisations decide to push for industrial democracy.


Amit, R. and Schoemaker, P. (1993). Strategic Management Journal. “Strategic Assets and Organizational Rent.”

Barney, J. (1991). Journal of Management. “Firm Resources and Sustained Competitive Advantage.”

Begin, J. (1991). Strategic Employment Policy: An Organizational Systems Perspective. Englewood Cliffs, NJ: Prentice-Hall.

Hodson, R. (1996). American Sociological Review. “Dignity in the workplace under participative management.”

Long, R.J. (2006). Strategic Compensation in Canada: Third Edition. Toronto: Thomson Nelson. Pp. 5-160.

Osterman, P. (1994). Industrial Labour and Relations Review. “How common is workplace transformation and who adopts it?”.

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