HOW TO RESPOND TO THE DISCUSSION BELOW AS A PEER STUDENT

My company is a nonprofit that relies on state funding and is experiencing a significant shortage of staff. Finding qualified staff is a challenge, but retaining those staff is more of a challenge. Staff salaries are highly dependent on funding approved by the state. Our compensation is set up in the Expectancy Theory.

Our Pay structure is set up by the position with a minimum and maximum rate per position. Base rate is set at an above market rate which is reevaluated periodically dependent on budget and new labor reports. We then factor in an employees education and years of prior relevant experience to get their starting rate. An inexperienced employee will start at the base rate. An employee with education or experience will start above that base rate, but not higher than the max.

All employees receive an automatic 2.5% increase at 90 days. This reward helps to motivate the employee to continue employment and reassures them that they can expect promised increases.

When the employee is hired, they are given a job description in which we explain our expectations of their work performance, and further explain the evaluation and raise methods. The employee receives an evaluation at 90 days which does not affect the raise given at this time. This further explains our expectations of them. At one year, will receive a performance-based evaluation, and dependent on their score, they will receive up to a 4% raise. 4% is a exceed expectations rating, whereas a meets expectation is 2.5% and any below mark will disqualify the employee for a raise.

Annually thereafter, employees are evaluated in this manner with raises as well. If budget allows, this percentage increase could go up, and that is relayed to employees.