Fifteen years ago, Ali Akbar started Pak IT Solutions. As the demand for the services grew, company needed more employees for all phases of business. Ali began to hire employees; he realized that virtually no one had the range of skills needed to run many projects that were in process. Employees needed specialized skills in computers, understanding of data base management system, knowledge of web designing and programming, as well as expertise in software development. Ali was hiring talented post graduates with different areas of specialization. Despite of having relevant education, two or three years of training was needed to achieve required outcomes. Ali was paying above-market salaries and was then hoping they would learn enough in the first two or three years to become valued contributors to Pak IT Solutions.

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The problem was that many talented employees left for better jobs within the first two years. Ali became convinced that he needed some type of incentive system that may increase an employee’s commitment to company, particularly in the first several years of employment.


After analyzing the above given scenario, what incentive compensation system would you recommend for Pak IT Solutions to increase employees’ commitment and retention? Give reasoning.

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MGT501 Human Resource Management GDB Solution