Career Development Plan Iv—Compensation

Compensation is form to encourage an employee to meet a goal based on company needs and can be adjusted based on available resources and business needs and goals (HR Guide, 1998, 1999, 2000). The compensation plan will include salary, employee benefits, and an incentive pay to encourage top performance.

The compensation package will be set up with fairness, or equity. According to Wayne F. Cisco equity can be assessed on three dimensions (Cisco, 2005):

• Internal equity. In terms of the relative worth of individual jobs to an organization, are pay rates fair?

• External equity. Are the wages paid by an organization “fair” in terms of competitive market rates outside the organization?

• Individual equity. Is each individual's pay “fair” relative to that of other individuals doing the same or similar jobs?

The first part of the compensation package will be traditional benefits such as healthcare, vacation, sick time, and a fixed salary. The second part will include incentives such as commissions, bonuses, and potential for yearly merit reward as well as merit increase in salary. Since we will be expanding to an international customer base we will have employees that will be stationed in other countries, do to this the third part will be an expatriate compensation.

Let me go into further detail of the compensation package that we are offering. When I say traditional benefits these are benefits that most major corporations are offering their employees and we want to remain a competitive business both in or products we offer as well as benefits we offer our employees. We will be offering full healthcare benefits from day one. InterClean will pay 80% of the monthly premium and the employee will be responsible for the other 20%. This will also include dental and prescription coverage. Each employee will get 2 weeks’ vacation, which will be prorated based on when they start, every year. On the employees 2 year mark they will receive an additional week of vacation...