Homework

Career Development Plan Part IV— Compensation

Kina Williams

December 23, 2010

Human Capital Management/ 531

Brett L. Waits

Compensation Plan

In today’s challenging and unpredictable economic market, companies are trying to redefine sales strategies, incentives, and pay compensation. Labor commands a high level of overhead for a company; therefore, pay policies, benefits, and compensations are critically important to be evaluated closely because it affects the livelihood and lifestyle of all workers. Ideally, an effective and sound sale compensation plan enables the company directly tie sales activities toward the expected outcome, and these outcomes should be rewarded with incentives and compensation base on the achievement level. If employers want their companies to be successful they need to have a great compensation plan that motivates employees, controls compensation costs, and ensures equity. Compensation plans are best when they line up with the culture of the employer.

To achieved a successful sales compensation plan, the sales goal has to be defined clearly, realistically, and challenging. Performances have to be track closely and measured toward goals. To determine a salary, a pay structure has to be created that will put employees in a grading system which includes experiences, education, and other qualifications. Compensation plan for new sales team department comprise off:

• Sales Bonuses-based incentives

• For short term incentives: Periodic bonuses (Quarterly)

For long term incentives:

• Annual bonuses when the company has a profitable year.

• Profit sharing

• Commission plus based salary

• Achievement or Career development will be recognized through awards.

• Promotions will be offered as career advancement. Continuing education and training will be provided for growth development.

• Tuition reimbursement for continuing education.

• Company’s benefits: Medical insurance, 401K, profit sharing, two weeks paid time...