Interclean Compensation Plan

Career Development Plan Part IV – Compensation

University of Phoenix

HRM/531

Danielle Lombard-Sims

Career Development Plan Part IV – Compensation

For part IV of the career development plan for InterClean, Inc. focus will occur on creating a new compensation plan for the new employment team. The plan will include an explanation for why the pay system will work. The pay system will include three components of a total rewards package that will motivate employees to reach peak performance. In addition, an overview of the compensation plan’s benefits to the individual and company will be provided.

During the compensation planning stage, the long-term strategic plan for InterClean will be taken into consideration as efforts occur to design a comprehensive and competitive plan. InterClean just acquired EnviroTech and plans on being a major player in its market. To achieve this goal, the compensation plan must be well thought out and ensure it motivates the employees to be top performers. The sales team is diversified and employees will desire different values with regard to benefits. A younger employee may have more interest in money now and more salary potential than retirement planning. An older employee may have more interest with planning for retirement in the near future. Efforts will occur to establish a lower cost flexible benefits package to satisfy employee needs.

The compensation plan will include workers’ compensation, disability insurance program (short and long-term), medical and dental coverage, sick leave, retirement plan (401K), unemployment insurances and social security. These benefit costs will be contributory whereby the employees pay a small percentage of the cost with the employer absorbing the bulk of the expense. One of the key benefits is the 401K plan is the company will contribute dollar for dollar up to 6% of the employee’s contribution. The employees will have an option to contribute up to 10% total per pay period. A...