RUNNING HEAD: CAREER DEVELOPMENT PLAN IV-COMPENSATION PLAN
Career Development Plan IV - Compensation Plan
University of Phoenix
As InterClean precedes a new direction, upper management is suggesting a new compensation plan for the current sales team. The new compensation plan will identify reasons why the pay system will work, the benefits for the sales employees as well as the company, and the components of a total rewards package that would motivate employees to reach their peak performance. InterClean's new sales force compensation plan will include a direct compensation plan, along with a total rewards package that includes security and health benefits, payments for timed not worked, and employee services.
InterClean will implement Envirotech's compensation plan that offers a base salary pay, along with commission based on the attainment of goals. With the base salary pay providing stability, the commission will increase motivation to meet performance goals. Commissions will be paid out as a percentage based on both team and individual sales. Team commission will be paid out every three months and will be based on attaining team sales goals which would incorporate individual sales numbers. On the other hand individual commissions will be paid based on a previous month's sales related to individual performance goals. Providing these commissions will allow employees to work hard for their commission while also encouraging team performance in order to receive a team commission disbursement. With InterClean providing a fixed salary and commission it will benefit the company by having a fixed payroll expense in their corporate budgets and benefit the employees in having a secured income to assist in their personal finances.
Reasons for Pay System Working
InterClean should determine the value of an employee's job to the organization and create a pay scale ranking accordingly. The external market should be evaluated and analyzed for similar positions to ensure that the pay scale is being competitive and will appeal employees to work and stay with the company. Moreover the pay within the organization should be equal to the other employees who have the same job and the same level of experience. According to Cascio, "the most important objective of a pay system is equity" (2005). Three equity dimensions that he mentioned were: internal equity, external equity, and individual equity. Equity is vital in employee incentive, and if any unfairness occurs, the employees will either decrease their performance or perhaps depart from the company.
InterClean's sales team will play a vital role in the success of the new direction and vision to offer full-service packages to their customers. Considering the sales team's positions are the most essential to the company, their compensation will be in a higher pay scale; therefore, their position will...