The New Compensation Plan

The New Compensation Plan

  • Submitted By: yenchao
  • Date Submitted: 01/29/2009 1:28 AM
  • Category: Business
  • Words: 441
  • Page: 2
  • Views: 975

New Compensation Plan:

• Salary in commission (based on Job Evaluation).
• Sick leave (up to four weeks annually).
• Vacation-OK before probation period.
• Holidays (Major)
• Health Benefits (100% covered)
• Educational tuition ($3000/year undergrad C grade and above $5000-graduate capitalize graduate be grade an above.
• Personal leave
• Retirement plans
• 401 (K) plans

Most of the chosen employees from InterClean and EnviroTech are pretty stable. The training for the new positions will be a challenge and growth expected. The above listed items will be the main compensation plans in place. A few of the employees from InterClean is paid straight commission. Those employees will receive a salary base and commission based on their job evaluation. The salary will be based on equity ‘fairness.’
The pay system will work due to fairness and extra incentives which should keep employees motivated to produce. The new pay system and incentives will work because it is more than the standard basic benefits package given to a probationary employee.

The 3 components of total rewards package that will motivate employees to peak performance:
Security and health includes sick leave, severance pay, hospitalization, surgical, and maternity coverage, workers’ compensation and much more. Employees will perform and be encouraged to produce if they are covered with at least the basics.

Payments for time not worked. For example, vacations, holidays, personal excused absences, sabbatical leaves and much more. A vacation day traditionally has been up to two weeks paid per year. Some employees would like vacation rollovers to the next year if they did not take their vacation in the current year. Increased vacation pay would be encouraging.

Employee services – For example, tuition aid, company car, financial planning, counseling, child care, family leave, flexible work arrangements, Christmas...

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