Performance, as well as revenue, is reviewed every 6 months. This way it allows JVA Corporation to cut or increase pay every 6 months and review its bottom line. Employees can also benefit by having the opportunity to earn pay raises potentially twice a year, rather than the typical annual reviews.
It is in my firmest belief that in order to achieve the reduction of the percentage of revenue that is allotted to employee’s compensation to 8% to 5% without having a big disheartening effect on our employees JVA corporation needs to make a tactically costs cuts that allows the corporation to continue to contribute to its employees rewards and pay raises for their good performance. I feel that this is vital to our organization ability to interest new talented candidates and keep those employees whose performance noticeably stands out. These changes should not be permanent, but they should stay in effect until our organization steadies and becomes cost-effective again. Some compensation packages like paid leisure travel should be completely excluded from the package for the time being, but not before clarifying with the employees that this is a much needed step for the corporation to take away in order for us to stay in business. I truly trust that employees much rather lose paid travel expenses rather than to lose their position completely.
Performance reviews should be conducted twice a year so that employees can receive criticism; whether positive or negative, from