Compansation

Carrier development Plan Part IV Compensation HRM/531 Introduction With the development of a new service-based product was necessary to completed few steps before like: a job description, a performance appraisal system, and the development of a new individual career development plan. This paper will now intend to develop a compensation plan that will encourage the individuals and the team by analyzing the following factors: * The compensation plan and its components. * The benefits results from this plan to the organization and individuals as well. * Compensation Plan * Benefits package Diversity plays an important role on the team especially in terms of age, which means they are in different stages of life, while some of them may have young children at home, others are currently planning a possible retirement in the near future. A flexible benefits package will be implemented to ensure the company is taking care of the each member’s need. The company offers four benefits fully paid, and among of that, employees will be able also to choose two noncontributory benefits like: Health insurance, life insurance, disability insurance, auto insurance. Every employee can choose all four above benefits, and just two will be noncontributory. An employee can choose all four of the above benefits, but only two will be noncontributory the others will incur a cost shared by the company. In addition to the noncontributory benefits, employees can also choose among services that will be available on a contributory basis including: Auto insurance, legal services, counseling, child care, stock options, and fitness plans. Enrollment in any of the programs can be update or change annually during the month of august. * Base Salary Each member of the team will be receiving a base salary for the first three month (These initial base salaries will be) based on current income, experience and job title. After this period of time, some of the positions will become incentive based only, and the rest will have a combination of salary with incentives. For this plan is a justification that should be consider, the team will have a lot to learn from the new service-base product, all this could lead to lower morale and frustration if the sales goals are not being met, this base salary will provide employees peace of mind for the initial process. * Performance Incentive For performance incentives to be effective they have to be “closely tied to specific, quantifiable and meaningful performance” (Cascio, 2006). The team main goal is to keep the existing relationships while generate new business, an because of this individual performance is a large focus for the company, understanding that all members plays a different role, requiring different incentives plans. All incentives will be paid via check on the 15th of the following month, or the next business day thereafter. This check will be separate from any payroll checks. 1. Team Leader: $2,600, to qualify for this incentive, all the member of the team must be meeting their individual monthly goals. 2. Customer Service Representative: Meeting individual goals (determined jointly by the team leader and customer service representative) will garner a $1,200 bonus. Exceeding those goals by 15% will earn an additional $1,000 bonus. 3. Sales Representatives: Each of the first five sales will generate a bonus of $600. The next five sales (numbers 6 – 10) will earn $850 each. Any sales above 10 (11 and onward) will generate $1,100 each. Meeting individual sales targets (determined jointly by the team leader and salesperson) will garner a $1,000 bonus. 4. Business Developers: Meeting individual goals (determined jointly by the team leader and customer service representative) will garner a $1,000 bonus. Exceeding those goals by 15% will earn an additional $1,000 bonus. * Team Incentive Team incentives have the ability to “encourage cooperation, not competition, among workers,” which will be vital to the success of this new team (Cascio, 2006). To help maintain, and even improve customer service, and sales, have been created the following team incentives. 2. Customer service based incentive: $1,100. The team to qualify must resolve all customer service issues within 48 hours of receiving the complaint or concern (excluding time for ordering or delivery of physical goods) during the calendar month. Any cancellations or refunds that are based on poor customer service or communication will disqualify the team for the current month. If qualifications are met, each team member will receive $1,100. 1. Sales based incentive: The team must close 25 new sales within one calendar month. Each member of the team must have personally referred, prospected, or closed a minimum of 2 sales. If qualifications are met for 25 sales, each team member will receive $1,100. If qualifications are met for 25 sales, each team member will receive $2,100. If qualifications are met for 35 or more sales, each team member will receive $3,100. * The Benefits * Individual This competitive incentive based pay plan will demonstrate there is no topping out and the employee can continue to exceed and earn more cash, also a flexible benefits schedule demonstrates the organizations commitment to each employee by allowing them to choose those benefits that have the most value or appeal to them and their families. * Organizational The plan will attract a higher quality of applicants. The company will also “benefit from a more committed and effective workforce, receiving more employee support for retirement and health programs that reduce risks for businesses, and a social and political environment that is more favorable to business values” (Song, Rhee, Adams and Azevedo, 2008). Keeping performance based incentives “attainable and measurable” will help to “increase motivation while providing additional recognition” (Cascio, 2006).