Compensation

Compensation

CAREER MANAGEMENT
PART 4: COMPENSATION
Introduction

Previous documents introduced the job analysis; the selection of a team whose members possess the requisite skills and abilities required to accomplish InterClean, Inc.’s, new strategic direction; training and mentoring programs (which programs will, in like manner assist employees in accomplishing this new strategic direction); and the creation of a performance and career management program for the employees selected for this team.   In this paper I will:

1. Describe a new compensation plan for the employment team;

2. Explain why the compensation plan will work;

3. Describe three components of a total rewards package that will motivate employees to reach peak performance;

4. Describe my compensation plan’s benefits to the individual as well as the company.

I. The compensation plan.   “At a broad level, an organizational reward system includes anything an employee values and desires that an employer is able to and willing to offer in exchange for employee contributions” (Cascio, 2005).  

“Salaries [will be] used most often to reward [team members], followed by commission, fringe benefits, and bonuses” (McColl-Kennedy, Kiel, & Dann, 1993).   Team members will receive “a bonus…for ‘sales exceeding a goal’ and ‘achieving budget, while commissions [will be] paid on ‘sales beyond a target’ or as a ‘percentage of sales’” (Ibid).   Additionally, team members will be offered benefits which include health insurance, sick leave, vacation time, flex time, and profit sharing.  

II. Why the pay system will work.   This pay system will work because the system offers an effective motivational tool: reward.   According to McColl-Kennedy, Kiel, and Dann (1993), employees will act in a “certain way” because whatever processes in which the employee is involved (in the case of InterClean, Inc., selling or presenting products, customer follow-up, and/or “service after the...