Career Development Iv

Tena Thompson

Career Development Plan, Part IV

Compensation System/Pay Plan

HCM/531

University of Phoenix

Professor: Pat FitzGerald

May 31, 2010

Now that the selection of the members of the team positions, the training program and the performance appraisal system have been created and implemented, it is time to present the new compensation pay plan. Generally speaking, pay systems are designed to attract, retain, and motivate employees; achieve internal, external, and individual equity; and maintain a balance in relationships between direct and indirect forms of compensation and between the pay rates of supervisory and nonsupervisory employees. Pay systems need to be tied to the strategic mission of an organization, and they should take their direction from that strategic mission. However, actual wage levels depend on labor market conditions, legislation, collective bargaining, management attitudes, and an organization's ability to pay. Our broad objective in developing pay systems is to assign a monetary value to each job or skill set in the organization (a base rate) and to establish an orderly procedure for increasing the base rate (Casio, 2005).

Compensation Plan for My New Sales Team

I believe in providing a compensation package that would be enticing and desirable to our current team members, but also attractive to future team members. We want a compensation package that is affordable for our company. The compensation package will begin with a very competitive base salary comparable to other companies in our industry. Next, we will offer an incredible benefits package including company paid medical and dental insurance, company matched 401K retirement package, paid sick time, paid vacation time and paid holiday time off. We will also offer a tuition reimbursement package to encourage our team members to further their personal education. We already have an in-house training program for our team members who need to work on areas of...