Compensation_Plan

Compensation Plan The Compensation Plan is the method by which Distributors are compensated for their retail sales and personal purchases of the Product, as well as the retail sales and personal purchases of the Product by their Downline Organizations. It also compensates them for the support and training they provide the Distributors in their Downline Organizations. The Compensation Plan is part of the Contract between the Company and its Distributors. (xango). I will be explaining the new compensation plan for the new sales team, also I will explain why I believe that this pay system will work, describe three components of a total rewards package that would motivate employees to reach peak performance and describe the new sales department compensation plan’s benefits to the individual as well as to the company. This compensation plan created especially for the new sales team will include direct and indirect rewards. The salary will depend on what position and what experience the employee has. The positions are from Outside Sales Representative to the Vice-President of Sales. There is going to be three outside sales representatives who will be offered a starting salary of $35,000 and commission. The Sales Manager will have a salary of $45,000 and will not have any commissions on sales by their representatives. The only way to earn Commissions is through the sale of Products. The Vice-President of Sales will be salaried for $60,000. A team bonus pay system will be implemented yearly for employees on the team. The bonus system will range from an additional 3% to 5% increase in pay. Salary could change depending on job performance and appraisals. Why it would work' I believe this plan will work since it motivates the employee to perform at their highest level. The compensations are attractive for anyone and I think they are competitive numbers compared to other companies. Our new sales team feels motivated by our new goals and objectives that they are thrilled to start working on the project. The numbers given before are negotiable in the future because they can change and that is what will motivate them to work hard every day. I believe that by offering our employees compensations we are showing them the trust that we have for them and that we believe that they can get their job done efficiently. Employees need to feel motivated and supported by their employer and that is why we are offering this benefits so we can get the best out of them. Three components of a total rewards package 1. Social Security and Health • Includes life insurance, workers' compensation, disability insurance, hospitalization, surgical, and maternity coverage, health maintenance organizations (HMOs), other medical coverage, sick leave, pension plans, social Security, unemployment insurance, supplemental unemployment insurance, severance pay. All these components will make feel the employee happy and comfortable in the work area 2. payments for time not worked o Vacations, personal excused absences, holidays, grievances and negotiations, reporting time, sabbatical leaves. As it is usual, our employees deserve the best treatment possible and that is why we treat them the best way possible. By giving them the change to get this benefit I think they will be more than happy and satisfied with the company. 3. employee services o Credit unions, stock purchase plans, auto insurance, fitness and wellness programs, food service, moving and transfer allowances, company car, transportation and parking. I think is one of the best benefits that they are going to have. They need to be treated important for the company. By giving them the chance of getting all of this I think that not everyone can offer this type of equipment. Compensation Plan’s Benefits Employees are going to be well covered by great benefits offered. Employees and managers need to think carefully about what they wish to accomplish by means of their benefits programs. At a cost of about 40 percent of base pay for every employee on the payroll, benefits represent substantial annual expenditures. Factors such as the following are important strategic considerations in the design of benefits programs: the long-term plans of a business, its stage of development, its projected rate of growth or downsizing, characteristics of its workforce, legal requirements, the competitiveness of its overall benefits “package,” and its total compensation strategy. The company will need the best employees available so that is why we are giving that to them so they can feel comfortable and secure in the workspace. We believe that our employees need to be treated fair and valuable. References: Cascio, Wayne F. (2005). Indirect Compensation. Managing Human Resources (Chapter 12). Retrieved March 17, 2009 from https://ecampus.phoenix.edu Smith, Jack (2006). Building a Sales Compensation Plan That Works. Retrieved March 17, 2009, from http://www.entrepreneurship.org/Resources/Detail/Default.aspx'id=10440 Xango.(2009) Distributor Policies and Procedures and Compensation Plan. Retrieved March 17, 2009, from http://www.myxango.com/pdf/en/USA-ENG-PP.pdf