Career Development Plan ??“ Part IV
HRM 531/ Toya Pruitt
University of Phoenix
October 12, 2009
Career Development Plan ??“ Part IV
Many employees look at the compensation when it comes to accepting or declining a job. Compensation plans can also determine if an employee stays somewhere or begins looking for a new job. A compensation plan is what you pay someone to entice them to continue to do work for your company. Many people are more likely to hold a job longer if they are offered a good compensation plan and rewards. There are not many people who want to work for nothing.
At InterClean Inc, it is going to be crucial for the employees to have a good compensation plan in order to keep them now that the merger has taken place and many changes are occurring. The compensation plan for the employees will consist of a salary and commission for the sales team. They will get a base salary and then make commission off of their sales. The employees will also get quarterly bonuses and have the option for health coverage along with dental, paid holidays, and paid time off. Employees will also receive a 401K plan option for retirement.
The pay system will work because by using a base salary the employees will be guaranteed a weekly pay to take home and pay bills and then they will get the chance to take home more by how many sales and the amount of sales they make. The commission is an incentive to encourage them to sale more so they make more money. By giving the employees the options for health and retirement plans it gives them a little flexibility. They do not have to take it if they would prefer the higher salary but yet they can if they need the coverage. It will not be a must have benefit because each individual has different needs. The paid holidays and days off allows them time with their family on special occasions and times needed.
A total rewards package to help the employees reach peak performance in our group at InterClean, Inc. will consist of total compensation, benefits, and work-life balance.
? Total Compensation will be made up of base pay and incentives. The factors that will determine how much total compensation each employee will get will be the following:
? Level of requisite knowledge and skill.
? Industry and market
? Size of business
? Profitability of organization
? Employment stability
? Employee tenure and performance
? Benefits will be offered to each employee. They will have the option to accept or decline them. The following will be offered benefits:
? Paid time off
? Work-Life Balance will be the third component of the total rewards package offered to employees. The work-life balance will include:
? Flexible scheduling
? Tuition reimbursement
Compensation Plan??™s Benefits
When hired at InterClean, Inc. each employee will be offered a compensation plan. The compensation plan consists of a base pay rate of $2800.00 a month and then a 4% commission off of sales made. Each employee will also receive a quarterly bonus based off of work performance and sales for that quarter. On top of the base pay, commission, and quarterly bonus, there will also be the option for health care, dental care, paid holidays and paid time off for the employees. Employees will also have the option to maintain a 401K plan for retirement. The amount of withholdings will be based off of family size and what exact plan the employee finds that best fits their needs. Within the total rewards package we offer employees will also have flexible scheduling in case of family needs or emergencies along with the option to do some telecommuting if necessary from time to time with their sales. We understand that from time to time family issues arise and family is very important to everyone. We also encourage school and training classes so at InterClean, Inc. the employee can attend school and be reimbursed for the tuition as long as the class has something to do with the career and is pre approved by management as an acceptable class to be enrolled in through our reimbursement program.
Compensation: Total Reward Plans that Attract, Retain and Motivate (2007) Cahaba Media Group. Retrieved on October 11, 2009 from http://www.constructionbusinessowner.com/topics/people-management/compensation-total-reward-plans-that-attract-retain-and-motivate.html.