Compensation

Career Development Plan Part IV – Compensation

Christina Hosty

HRM/531 Human Capital Management

Carol Willet

August-15, 2010

Christina Hosty

10 A Fred Hecht Drive

Spring Valley, NY. 10977

cherkner@yahoo.com

Carol Willet

Table of Contents

1. Introduction 3

2. New Compensation Plan 3

3. Reason for Success 4

4. Total Rewards Package 5

5. Benefits for Individual and Company 5

REFERENCES 7

Career Development Plan Part IV – Compensation

1. Introduction

With the merger of InterClean and EnviroTech a new sales department is formed. In addition to the performance and career management program, a new compensation plan is described that is tied to InterClean’s new business strategy. Therefore, a systematic pay structure is developed, which values the contribution of each team member and is based on principles such as fairness and balance. In addition, three components of a total rewards package are described that will recognize and motivate every employee to reach his peak performance. Last, the benefits of the compensation plan to individual and company are explained in more detail.

2. New Compensation Plan

The compensation plan for the new sales team needs to consider legal and economic factors, the business strategy, a systematic pay structure, and address key policy issues (Cascio, 2005).

According to the Fair Labor Standards Act (FLSA) and the Equal Pay Act (EPA), InterClean must pay employees in similar positions an equal amount of money regardless of sex or race, and provide at least the minimum wage according to federal and state policies. Nevertheless, InterClean is providing cleaning solutions for the health care industry where the labor market is tight because of special expertise and skill level needed in that area. Therefore, InterClean needs to pay a higher price than the competition to attract, retain, and motivate its employees.

The new business strategy of InterClean focuses on establishing long-term relationships with...