The merger is now complete, after constructing a management behavior plan. We went into discussing a career development plan that allowed us to process job analysis and selection methods, training and mentoring, and performance, and career management. Now it is time for IntreClean to develop and implement a compensation plan. In completing this plan, we must keep in mind that an appropriate compensation plan will attract, retain, and motivate our employees. The morale at IntreClean is low and if we are to raise morale and bring together our company, compensation plan needs implemented properly.
We as managers must think carefully about benefit programs. According to Managing human resources, “On average, firms spend $18,000 per employee on benefits in addition to wages (Cascio, 2005). To impact compensation plans, managers should answer these questions:
• Is the long-term strategic business plan consistent with the type and level of InterCleans benefits coverage?
• Is the Characteristics of InterCleans workforce meeting the needs of the employees?
• What types of legal requirements must we satisfy in the benefits we offer?
• Is an InterCleans benefit competitive in cost, structure, and value to the employees and his or her dependents?
• Is InterClean’s benefit consistent with the objectives of total compensation strategy, cost control, adequacy and balance?
Take long-term strategic business plans. These plans are an organization wishes to be in the next three to five years. An organization stage of development influences the design of benefits. Take a venture startup that particular company will most likely offer lower base pay and benefits but high incentives; whereas a mature firm will probably offer much more generous pay and benefits combined with moderate incentives. Another thing to look at is someone young maybe more interested in direct pay versus generous pension pay program; whereas someone older desires the reverse of that. As for...