November 7th, 2010
Memo To: Janet Durham
From: Shala Myers
RE: 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. The plan should both encourage and reward performance. 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.
Pay System Mechanics
A competency-based pay system is most aligned with the business structure of InterClean, Inc. as opposed to other popular systems. This type of system will assist with the development of critical behaviors and skills employees need to achieve goals set by InterClean, Inc. Using this system the highest quality employees are retained and this will offset the cost of expensive training and development program we have implemented. Spending the time and money it takes to train adequately our salespersons is worthless to the organization if the employees are not being retained. This type of system may result in an average wage higher than other competitors; however, we are investing much more into our employees than other companies are. This system will ensure that our training dollars are being put to work and will require employees to develop those behaviors that will lead them to success
Sales positions will be salaried and determined based on skill level and abilities. Entry-level employees (those employees with fewer than two years of direct sales experience) who have not had a chance to develop and perfect skills and...