Compensation

Compensation

Do to the merger InterClean had to look at the company’s management behavior, job analysis and selection, training and mentoring program, performance and career management that included making a new appraisal system, and know it is time to look at compensation. “Organizations have a set amount of income coming in and those funds must be spread over a variety of company needs, such as capital assets, research and development. Purchase of raw materials, taxes, marketing, and compensation. This means that HR professionals need to realize that there is only so much money available for pay systems, benefits, and recognition program” (SHRM, 2008, p. 4-36). This proposal will describe a new compensation plan, explain why it will work, describe three components of a total reward package that would motivate employees to reach peak performance, and finally describes the compensation plan to the individual as well as to the company.

Compensation Plan

Assuming that the total rewards system is legal and affordable, its basic objective is to provide the employer and the employees with a system that is:

 Compatible with the organization’s mission and strategy.

 Compatible with the corporate culture.

 Appropriate for the workforce.

 Externally and internally equitable.

 Effective in retaining employees.

“The broad objective in developing pay systems is to assign a monetary value to each job in the organization (at base rate) and an orderly procedure for increasing the base rate” (Casico, 2006, p. 425). To develop such a system four basic tools are needed.

1. Updated job description.

2. A job evaluation method.

3. Pay surveys.

4. A pay structure.

InterClean’s sales team has the direct and immediate impact on the company’s revenue. The goal of the sales compensation plan is to benefit the company and the employees. This is why a mix pay was chosen for the team, which will be a base salary plus commission. This way it takes...