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We are now going to take this topic a big deeper and focus in on Managed by Q. 

Q Case Incentives: In the Managed by Q case study we learned that they were willing to create an incentive plan where employees could earn up to 15% of their pay. You have been hired by Q to provide a proposal for this program.  

1. What type of incentive program would you create? 

2. What would be the metrics for this program, if any? 

3. Who would you include in the program? 

Must be 3 to 4 pages plus cover and references. 

Note: This should not be a philosophical paper but rather one that focuses in on Managed by Q itself. Be sure to get into the "weeds" talking about actual design and the dollars around these programs. Write it in a way that can be understandable by both the employees and management. And, most of all, have fun! This is a creative assignment where you can be the architect of the program.

CASE STUDY: MANAGING Q 1 Introduction An organization’s human capital is a vital determinant of its success, considering a highly motivated workforce is not only motivated to work but also engaged with the duties allocated to them. When this happens, employee productivity improves, which ultimately leads to COMPANY CASE STUDY: MANAGING Q 2 organizational success (Kim & Jang, 2020). One of the most effective strategies organizations uses to motivate their workforce is compensation (Kim & Jang, 2020). Rewarding employees for their excellent results, performance, or achievements allow organizations to motivate their employees to increase their productivity. As such, this paper will analyze the subject company within the provided case study, specifically focusing on the identification of its pay philosophy and its impact on the company's performance and competitive advantage. Q’s Pay Philosophy Managed by Q, also referred to as simply Q is an on-demand cleaning and maintenance company. Like most other organizations, Q realizes the importance of having a pay philosophy as a tool to guide its compensation decision-making. The company's pay philosophy is aligned with the key objectives it wishes to attain. Dan Teran and Saman Rahmanian, the company’s founders, recognize the value investing in its workforce will bring to their organization, considering they are the ones who determine whether the company will attain its goals. One of the major reasons Tehran and Saman decided to start their company was the frustration they were experiencing in their previous jobs due to the lack of transparency by companies providing cleaning and maintenance services. As such, they decided that ensuring that their company is transparent and accountable will be a key objective that every person within the company should embrace. When this happens, the company will assume total control over the quality of services it provides to its customers. In order to ensure this happens, the founders, Teran and Saman, came up with a vision of creating an allinclusive organization whereby every employee’s work satisfaction was equally important and felt dedicated to Q's success. This vision is reflected in the company's pay philosophy, which is anchored on the premise that employees are vital stakeholders within the organization and are the COMPANY CASE STUDY: MANAGING Q 3 determinants of its success. In line with this, all employees, irrespective of the role they performed at the company, are referred to as operators, while those working from customer sites were referred to as field operators. Another critical aspect of Q’s pay philosophy is centered on the belief that investment in its workforce by paying them above the industry average will help the company perform well financially. Doing this is vital for the company in light of the high employee turnover rates within the industry and the need to retain customers. In addition, cleaning operators' salaries are reviewed every six months, an activity that was accompanied by a pay rise. Employees are provided with additional benefits and career development opportunities. Some of the benefits provided include getting paid for travel time as they navigated through jobs, free health insurance for those working at least thirty hours per week, forty hours of vacation, and a savings plan. Career progression and development are also part of the company's compensation philosophy. Employees at the company can become mentors or supervisors since Q is only promoted from within its ranks. Finally, Q's pay philosophy also incorporates a bonus payment structure based on a couple of employee performance metrics for its operators. Under this structure, operators who exceeded the metrics received bonus payments to the tune of fifteen percent of their pay. Impact of Q’s Pay Philosophy on Its Profitability Q’s founders, Dan Teran and Saman Rahmanian identified some of the problematic aspects of the industry they intended to operate. These problematic areas were amongst the major reasons organizations within this industry were struggling to remain viable. They managed to pinpoint that the on-demand cleaning and maintenance industry is riddled with high employee turnover rates. The major reason for such a phenomenon revolves around the treatment of employees. As mentioned in the introductory part of this paper, human capital is a vital determinant of COMPANY CASE STUDY: MANAGING Q 4 organizational success. When organizations fail to invest in their human capital, the likelihood of them becoming successful is quite small (Kim & Jang, 2020). Such a fact is reflected within the company’s pay philosophy, which plays a crucial role in the success attained by Q. One of the ways the company’s pay philosophy contributes to its profitability is by ensuring that it has a highly motivated and engaged workforce. More often than not, organizations operate under the notion that the more money they spend, the fewer profits they will make. According to XXX, such a notion is flawed, considering the amount of money a company spends on its employees in the form of salaries and benefits has an impact on employee motivation, engagement, and productivity. When an organization pays its employees poorly, chances are very high that most of them will not feel motivated to give their best when they show up for work. The net effect of this is that they will be less engaged with their duties and responsibilities at the workplace, which will adversely affect their productivity, which leads to poor overall performance by the organization. On most occasions, employee performance is linked to organizational performance. What this means is that how an employee performs affects how the organization they work for performs. When employees perform well, their organization also performs well (Sudiardhita et al., 2018). Q recognizes this aspect of organizational performance and uses its compensation structures and philosophy to effect it. By paying its employees’ salaries above the average industry rate coupled with extra benefits and career development opportunities, the company is able to ensure that its workforce is always motivated to go the extra mile in the performance of their duties (Sudiardhita et al., 2018). This is because employees are aware that the pay they will receive once they undertake the assigned duties will be commensurate to the effort they put in when working. COMPANY CASE STUDY: MANAGING Q 5 Courtesy of this, they will always feel motivated to work, remain engaged with their job, and their productivity will increase. When this happens, the company will always ensure its customers are provided with high-quality, transparent, and accountable cleaning and maintenance services. The net effect of this is that customer satisfaction will go up, which then leads to Q not only getting additional work orders from its existing customer pool but also attracting new customers (Sudiardhita et al., 2018). More customers’ mean more profits for the company, which is evident from the company's financial statement. The company's clientele has consistently grown from an initial one hundred customers during the first year to one hundred and thirty-seven customers by the fifth year. During the same period, the company's gross profits also grew from $1,033,850 in the first year to $1,252,888. Such excellent performance can be attributed to the company’s highly motivated workforce. Impact of Q’s Pay Philosophy on its Competitive Advantage One of the major reasons why the company consistently performs well revolves around its growing customer base. Such a phenomenon can be attributed to its pay philosophy, which the company uses to motivate its current pool of employees. Q’s pay philosophy has also enabled the company to develop a competitive advantage that allows it to fend off and remain ahead of its competitors. According to Rabbi et al. (2015), competitive advantage denotes the various factors that enable an organization to provide value to its customers better or cheaper than its competitors. More often than not, these factors push an organization to generate superior margins in comparison with its market rivals. From an analysis of Q’s financial statement, it would be reasonable to assume that the company performs better than most of its competitors. The company's pay philosophy has a lot to do with this. Organizations can enhance their competitive advantage in various ways. One such COMPANY CASE STUDY: MANAGING Q 6 strategy revolves around attracting and hiring the most talented employees (Rabbi et al., 2015). The fact that the company offers its employees above industry salary rates, additional benefits, and opportunities for growth and development means that it attracts the most talented employees during its hiring ventures. Employees will come to work at Q since they are aware that such a decision will be accompanied by better pay and additional compensation benefits they might not get from other organizations' employees (Rabbi et al., 2015). Due to this, the company's workforce will be highly motivated and very skilled, all aspects that contribute to the provision of high-quality cleaning and maintenance services by its workforce. Such a situation forces customers to transact with the company rather than its rivals' employees (Rabbi et al., 2015). Furthermore, competitive and attractive compensation packages tend to prevent talented employees from leaving an organization. In line with this, its competitive advantage stems from the fact that its pay philosophy prevents it from dealing with high turnover rates, unlike its competitors, who are still dealing with this issue. More often than not, organizations that can retain their key and talented staff perform better than their rivals. Conclusion From the analysis and discussion in this paper, it is reasonably clear that investment in an organization's human capital leads to improved organizational success. Q considers its employees as vital components of the organization and ensures they get a very competitive and attractive compensation package. Due to this, the company's workforce is highly motivated and more productive, an aspect that ensures that its customers always get high-quality services. Q's pay philosophy gave the company a competitive advantage, which positively impacted its financial performance. COMPANY CASE STUDY: MANAGING Q 7 References Kim, H. S., & Jang, S. S. (2020). The effect of increasing employee compensation on firm performance: Evidence from the restaurant industry. International Journal of Hospitality Management, 88, 102513. Rabbi, F., Ahad, N., Kousar, T., & Ali, T. (2015). Talent management as a source of competitive advantage. Journal of Asian business strategy, 5(9), 208. COMPANY CASE STUDY: MANAGING Q 8 Sudiardhita, K. I., Mukhtar, S., Hartono, B., Sariwulan, T., & Nikensari, S. I. (2018). The effect of compensation, motivation of employee and work satisfaction to employee performance Pt. Bank Xyz (Persero) Tbk. Academy of Strategic Management Journal, 17(4), 1-14.