Retaining good employees is a challenge that every company faces. For a company retain the employees they must ensure that the employee feels that the company values him or her. If the employee feels valued, the company will benefit from the hard work that the employee will put worth to show his or her value is not misplaced. This will also lower the turnover rate that cost a company in production and retraining cost.
The compensation plan that I have devised is developed to reach this goal. The employees of the sales team will receive not only monetary compensation but also benefits that each employee needs. Employees may view money as a short-lived compensation where the employee may value other benefits more.
Pay
All the employees on the sales team will start at the same salary of $45,000.00 a year. Every year each salesperson will receive a cost of living increase at the beginning of every year to be based upon the customer price index but not to be more than 3%. Along with the cost of living adjustment, each salesperson on their date of hire will receive his or her evaluations. Depending on how the well the salesperson performed he or she could receive no increase to 6%, so each salesperson has the potential of a 9% pay increase in each calendar year. This will help each salesperson to able to either continue at their current value or earn more through his or her performance. All salesperson will receive a commission of 2.5% for four years on all new business that he or she may close. As a sales team, if the department reaches the year end goals each sales member will receive a year end bonus.
Benefits and Compensation
As stated earlier, pay is only part of what makes an employee feel valued. So with a aggressive benefit and compensation plan each sales member will be able to focus on his or her job with fewer distractions from his or her personal life while at the same time feel that InterClean values them as an employee. The new sales team will...