Compensation Plan

Running head: Compensation Plan

Compensation Plan: InterClean, Inc.

Rayneta Harrell

Aron Muse/HRM 531

University of Phoenix

Abstract

InterClean is at the stage of creating their compensation plans for their employees. Compensation plan should be aligned with the business objectives and mission of the company. The plan needs to focus on recruiting and retaining the best talent in the industrial and sanitation industry. To create an effective plan, a business needs to take accountability of the company’s products and services and ability to motivate desired sales among all sales representatives.

Compensation Plan

Compensation is a way the company entices an individual to work for them. The term compensation is often thought of as the salary one will receive upon offering and accepting a position. As Cascio (2006) states, “The broad objective of the design of compensation programs (i.e., direct as well as indirect compensation) is to integrate salary and benefits into a package that will encourage the achievement of an organization's goals.” Benefits, salary, incentives and bonuses are all included in a compensation package. Every company balances all of these aspects according to the current job market, similar positions, and the expected job performance. In considering an effective compensation plan, there are many factors that come into play. The economy and a competitive industry are some factors that play a role into any compensation plan. Because of constant change in the United States economy, many companies are constantly adjusting their compensation plans to adapt to the surrounding market.

Flexibility

In the 21st Century, the market has become so unpredictable. As a result, InterClean will instill flexibility among their employees. As Newborne (2003) states, “The Alexander Group reports that more than 90 percent of firms will make some kind of change to their compensation programs this year.” Employees like to be held accountable for...