InterClean, Inc. Total Compensation System
The merger at InterClean has been successfully completed. InterClean management has created a career development plan and appraisal system for the employees. Senior management is now in the process of creating a compensation plan for the employees. This document is focused on the basics of total compensation system. This memo explains the connection between the business, employee’s job, performance and salary.
Compensation plan
Employer costs for employee compensation is divided into two major components such as wages and salaries, accounted for 69.7% of the cost and the remaining 30.3% is accounted for benefits (“U.S. Department of Labor's Bureau of Labor Statistics”, 2008).
The compensation plan will start with evaluating the job requirement and creating a job description. Data from both internal and external sources will be used to decide how the job requirement compares to other jobs and salaries at InterClean and to similar jobs and salaries at comparable business. A position grade shall be assigned to job followed by assigning a salary range (Cascio, 2006).
Every job shall be evaluated based on its value within the company and the marketplace. The Job evaluation process should consider the job requirement only. Consistency is critical in order to establish a value for different jobs that require similar skills and responsibilities.
Managers shall prepare and revise job descriptions with the information such as Job title, responsibility level, list of duties and job requirements. Manager and human resources representatives will also involved in the process and shall review, approve each description for accuracy, consistency and clarity.
Each job at InterClean requires certain levels of skills. Training and experience are two of the factors used to evaluate the job. Other factors such as knowledge or education, complexity of job, analytical ability, creativity, innovation and number and level of people...