Compensation_Career_Development_Plan

Career Development Plan IV Mariam Ibrahim HRM/531 November 15, 2010 Tracey Durden To: Humane Resources Department From: Mariam Ibrahim Date: November 15, 2010 Re: New Compensation Plan As we move forward with the merger between InterClean and EnviroTech speaking on behalf of my team, we came out with a new compensation plan that will motivate our employees to improve their performance. I believe that this merger obtain the company with varies advantages. This memo will outline the plan, which includes the details regarding the process. The two types of compensation structures are financial and non-financial reward systems. The financial reward system includes direct pay such as salary or indirect pay such as benefits. The non-financial reward system includes physiological rewards such as recognition from the supervisor or team members (Cascio, 2006) The employees will have a base salary of minimum wage and the commission earned will be included. Our commission system will give the employees the motivation to improve their sales skills, as the pay will increase each time they will make a sale or a deal. Inside and outside sales teams will cooperate to discover new skills methods as they enhance these skills by experiencing different techniques. For that reason their pay will be merit-pay system while using the non-financial rewarding system for an increase in motivation. As inside sales team doesn’t sustain sales on regular basis, they will be compensated by annual raises and other incentives (vacations, computers, a basketball match between two teams, etc.) when the company achieves the sales goal each month. This way all team members will be treated fairly, as a result the employees will believe that the rewards are obtainable. As to have an effective incentive system, we thought of using the merit-pay systems. According to Cascio (2006), this plan may not work for many reasons such as the incentive value of the reward offered is too low, the link between performance and rewards is weak, supervisors often resist performance appraisal, union contracts influence pay-for-performance decisions within and between organizations, and the annuity problem. However, this system will work for the company as the humane resources will place some guidelines for effective merit-pay system such as establishing high standards of performance, developing accurate performance appraisal systems, training supervisors the mechanics of performance appraisal and giving the feedback to subordinates, attaching rewards closely to performance and will use a wide range of increases meaningful (Cascio, 2006). There will be a standard benefits the employee will initially receive; health insurance with employee share of cost, 401K match, 14 days paid vacation and 10 days of sick leave. After the employee reaches a certain level of rewards, he/she can trade in with a security and health benefits he/she wants as a reward of his/her efforts. The components of the reward packages will be clearly communicated and written for the employees. The main responsibility of the humane resources department is to inform the employees of their benefits and update them with any new changes. Employees must have a clear idea of their options and benefits so as to avoid any confusion or misunderstandings. This compensation benefits will motivate the employees to earn points so as to gain their needs, also they will want to improve their performance. We provide these benefits to ensure that the employees feel appreciated and we value their efforts, in addition to frequent workshops and trainings to improve skills and ensure they learn new techniques in the market. Managers/Supervisors should make sure that they give the employees the extrinsic and intrinsic rewards so as to increase the motivation. The extrinsic rewards aren’t always available however the intrinsic can be available at any time with no cost. As the employees earn more points and rewards the more they will be satisfied, the humane resources should develop new competitions and new rewards to keep them motivated and eager to enhance their career. We believe that informal meeting can be managed to discuss concerns and new ideas, by voting the employees will choose their benefits. My team and I believe that this compensation plan will work if team members cooperate to maintain a positive environment in the work place in addition when they observe that they are in charge of their benefits, they will be comfortable to retain their top performance. The advantages the company is gaining from the merger are tremendous; to maintain the maximum benefits from this change the employees must have positive attitude, and be willing to do their best to achieve their goals. The company must plan, organize, and monitor the morale productivity. Supervisors should be supportive and willing to guide their teams into a new level of performance. At this time of transition, the supervisors need to create a healthy work environment that makes everyone comfortable with his/her new position. References • Cascio, W. (2006). Performance Management. In Workplace Training (7th ed., pp. 326 – 371). New York, NY: McGraw-Hill.