Career-Development-Plan-Part-IV

Career Development Plan Part IV- Compensation

HRM 531

University Of Phoenix

MEMO

From: Sales Department Manager

To: Human Resources Department Manager

Re: Career Development Plan Part IV – Compensation

After the merger with EnviroTech, I have created a new sales team, identified their roles, and created training and mentoring programs that will increase overall performance and also an appraisal system. And now because InterClean is embarking on a new strategic direction, I am tasked with creating a new compensation plan specifically for the training team. This compensation plan will help motivate Sales team performance; it will also describe the total rewards program and illustrate how the program will benefit each member, the team and InterClean.

Compensation Plan

Due to the restructuring of InterClean, Inc., it is important that we consider also restructuring the compensation plan that we are currently using. This plan will encourage and reward performance, this will increase returns. “An organizational reward system includes anything an employee values and desires that an employer is able and willing to offer in exchange for employee contributions more specifically such compensation includes both financial and non financial rewards.” (Cascio, 2005) Motivating employees to work hard is a much easier challenge when the benefits of doing so are appealing. Designing an effective pay plan requires a mix of financial rewards and nonfinancial rewards that link company objectives with employee expectations. The individual needs of each employee should be considered to guarantee a sufficient level of rewards is being offered. Therefore, I am proposing a compensation plan that includes consideration for each of the above-mentioned objectives in which I know will prove to be effective. Designing and implementing an effective compensation program is a critical activity. It may be not be easy to predict the effect of such a program and the influence it will have at InterClean, but it is essential. This new compensation plan for the sales team will include both financial and non financial benefits. Financial rewards include direct payments to salary as well as indirect payments to salary such as employee bonuses. Non financial rewards include day to day work environment appearances that will enhance an employee sense of self respect; an example of this is, training opportunities and involvement in decision making. The new compensation plan will be a market – based pay structure for the employees. When an employee understands their specific detail of their job description it is a key tool in the destination of their pay system. We have already identified the important characteristics of each job; next step is to determine how much InterClean is willing to pay for such a skill.

Pay system

A pay system can reinforce an overall corporate objective of increased profitability, focus on both individual and team effort, and emphasize both short-term and long-term strategies. The market-based pay system will provide competitive wages for our sales team; this will in turn motivate them to put a 100% effort. With a base salary, quarterly bonuses, and commission my team will have the motivation to drive for success. A commission incentive program will have a generous structure that will motivate performance on each employee. When a company does provide such a program the employees go out of their way to increase their salary and escalate productivity. Providing the right amount of base salary plus the right amount of commission, InterClean will appeal to and retain the top employee’s without jeopardizing any relationships with their other employee’s.

Components of a total rewards package

Some of the most influential components of a total reward package that will help motivate employees to reach their peak performance are

benefits,

work life balance

Compensation.

Benefits make up more than half for any companies total reward package. Benefits are what attract the employees, keep the employees at the company, and motivate each employee for more success. Next important component is making sure the employees have a balance work life schedule. Flexible scheduling, childcare, and tuition reimbursement are some rewards that define this package. Employees can work at home as well when arranged between them and their manager. Statistics show that when an employee is happy outside of work, they will do better in work. The last component for the total rewards package is compensation. Benefits might attract the employee but compensation is what brings in the employee. The right amount of compensation will bring out the best from our sales team. The new reward package should include quarterly bonuses based upon performance measures. InterClean must reach a minimal target of $900,000 per quarter in total transaction for this portion to take place. Once InterClean has reached its quarterly goal each Sales employee will receive a 5% performance. bonus.

Benefits

By providing benefits for the Sale team, InterClean will benefit through increase revenues, and the employees will benefit through the total rewards package.

Benefits objectives are to:

Instill sense of ownership in InterClean and its customers

Motivate the sales team to improve customer satisfaction levels

Build teamwork and improve the relations between the team, the company and customers

The sales team has a chance to increase their salary through commission and hit quarterly bonuses as a team. This allows employees to work in a team environment and bring positive benefits to the company. Your department should work modalities with upper management so that the following benefits are included if not already as part of InterClean employee overall compensation:

Retirement plans 401 (K)

Medical and Life insurance for all employees.

Dental insurance for all employees.

Flex time. The sales person will have the option choose the set of hours he or she wants to work in a given day (coming late and leaving late for example)

On-site child care facility.

Offering these benefits to the sales team will not only ensure security and flexibility for them. It is important for InterClean to have a detailed compensation plan for our employees. In this compensation plan employees have the option of increasing their pay or staying at their base salary. At either option, employees win because an employee is in charge of how much revenue they will be making, which leads to happy and motivated employees. provides them with retirement saving plans, health insurance, and flexibility to care for one’s family members.

References:

Cascio, F. Wayne, Henry R. (2005).Chapter 11: Pay and Incentive systems: The McGraw-Hill Companies.

HRM A strategic approach: William P. Anthony. Compensation systems Chap 11