A Sound Compensation Package

A Sound Compensation Package

  • Submitted By: kyle2000
  • Date Submitted: 02/23/2009 5:26 PM
  • Category: Business
  • Words: 974
  • Page: 4
  • Views: 4

Running head: Career Development Plan Part IV

A sound compensation package enables the organization to focus activities towards desired results, and rewards these outcomes with compensation tied directly to the level of achievement. David Spencer, CEO of InterClean, Inc., has a new vision for the future of his company: an expanded, global company specializing in cleaning and sanitation. To this end, he seeks to steer InterClean, Inc.’s management into a business model the exploits new solutions and sales models, merges with the recently acquired EnviroTech, Inc., and increases revenue by 40% annually.
InterClean’s compensation plan will adopt EnviroTech’s policy to use a combination plan of straight salary plus commission on the performance basis. The following shall be the basic building blocks with options to choose from in each:
• Salary
• Incentives
• Benefits
• Expenses
So far we have explained the importance to our 3 first level managers on the importance of the type of behavior managers should exhibit; conducted a job analysis; outlined a workforce planning system; and selected new members for our team. Next, we development an in-depth training and mentoring program for the new team as well as create a career management plan for our employees to grow. Now, we will examine what is near and dear to many, compensation. I will describe my new compensation plan, explain why the pay system will work, identify a few components of a total rewards package to keep the team motivate and strive to reach peak performance, and last, explain the compensation plan’s benefits to the team and company. Let’s first examine my new plan for the team.

New Compensation Plan

The new compensation plan I will use will be salaried and performance based. Each member of the team will start with an annual salary commensurate with the industry standard based on their particular position with the company. The initial annual salary selected for each...

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