Hrm 531

Compensation Plan

HRM 531

June 20th, 2011

Dr. Rupe

Compensation Plan

In the industry of billion dollars, the success is no longer about which products are best that cut through the grime and kill germs. This industry involves much more than products which is the service a client gets and receives. The solutions and services which streamline the cleaning efforts are the stringent requirements for environmental safety.

InterClean has just recently merged and acquired EnviroTech, who used to be a major domestic competitor in the corporate market. The future profitability actually hinges on fulfilling the emerging need in the market. As part of the restructure of the corporate the company is going to consider several resources in training and mentoring the new sales force to meet the high demands. In order to increase and level of employee retention, I will be proposing that we implement the following new compensation plan for them.

Benefits of Proposed Pay System

In order for the company InterClean Inc. to be able to obtain the goals set by corporate, also to be able to receive a good return on the money it is inventing in training its sales labor force team, the company needs to first be able to retain its members of the sales team; and secondly ensure increasing productivity of the team. These goals can only be accomplished over a long period of time not in short term. If the employees are offered a competitive reward system they will be able to be motivated to perform above and beyond.

I strongly believe that InterClean will be able to achieve all their goals if they move away from the current policies of inflation where seniority can be a drive force behind the pay increases. It is in the interest of the company to join the labor market trends in which “pay-for-performance is the new mantra”, (Cascio, 2006). As a company we have to stay focused and careful in the way this new system is implemented. We definitely do not want people to misinterpret...