Creation

Compensation Plan

Kim Spann

HRM/531

May 5, 2011

Carlton Robinson

Compensation Plan

Kim Spann

1771 Lexington Parkway Suite 100

San Diego, CA 92111

May 5, 2011

John Wilson

Human Resource Manager

InterClean, Inc.

P.O. Box 12345

San Diego, CA 92345

Dear John Wilson:

As a sales manager of InterClean, Inc., I would like initiate a compensation plan to motivate my employees. The employees of InterClean, Inc. are doing a good job, but there are times when motivation with rewards will improve the performance of employees. A compensation plan for employees can be in many types of forms. The compensation plan that I will choose will consist of monetary rewards, certificates, pay increase, and time off with pay. As you indicated during our meeting, InterClean, Inc. has a good team, but can be better with a new compensation plan to enhance the performance of my employees.

This correspondence outlines what I would like to have as the new compensation plan at InterClean, Inc.

OBJECTIVE

The compensation plan will be a plan at InterClean, Inc. that will include both financial and nonfinancial rewards. According to Cascio (2005), financial rewards include direct payments (e.g., salary) plus indirect payments in the form of employee benefits (see Chapter 12). Nonfinancial rewards include everything in a work environment that enhances a worker’s sense of self-respect and esteem by others (e.g., work environments that are physically, socially, and mentally healthy; opportunities for training and personal development; effective supervision; recognition).

COMPENSATION PLAN

Pay System

Assist in implementing a pay system that will allow me to control personnel cost, increase employee morale, and reduce workforce turnover. A formal pay system provides a means of rewarding individuals for their contributions to the success of InterClean, Inc., while making sure that my company receives a fair return on its investment in employee pay....