Compensation Paper

order for this company to achieve our long and short term sales goals we need to tie our compensation package to our strategic mission. Our compensation package should accomplish a number of objectives such as: encouraging and rewarding performance, attracting and retaining the right people and treating everyone fairly while providing a number of services and benefits to our employees. The new compensation plan must also have cost limits in mind since we have just started out in this new area. The components in our pay system will be financial (pay, merit increases, stock) as well as non-financial (training, educational). In order for our system to work effectively HR and upper management should determine what equitable payment for work is. We should validate fairness of our system during employee reviews and surveys as well as make regular comparisons on financial incentives against data bases. One of the most important reasons for a compensation plan is to motivate individuals to actually perform the job and reach our goals. We have tied our compensation plan to our strategic goals and mission of become a global player in the cleaning/ service industry. In order for this to occur, our system must achieve some short term goals such as: high sales performance and retention of employees. These goals will increase revenues to fund expansions, internet advertising and other planning initiatives. We have determined the pay structure based on our job analysis that was conducted, job evaluation from upper management and HR, pay surveys and the external labor market conditions. We have defined the compensable factors, their weight and have assigned an estimated dollar figure for those skills sets using a point system. This point system will allow us to assign base salaries to individuals and create pay grades and ranges for that position as well as to allow for merit increases and promotions. (Sales associate to Sr. sales associate). We realize that base salary ranges...