Compensation_Plan

Keeping in step with InterClean’s new strategic direction, the new team compensation plan will incorporate creative planning to maximize: 1. Building employee and team loyalty 2. Team motivation 3. Rewarding top performing team members Describe a new compensation plan for your employment team. Sales managers face challenging choices in decision making every day. The multi functional team members will face these challenging dilemmas as InterClean embarks into a new market. By utilizing the job analysis for team member positions, organizational measurements, and individual measurements an organizational rewards plan has been set up for the new sales team. Rewards will combine indirect and direct compensation on an individual level as well as a collective team. In conjunction with already available company benefits (listed below) these additional benefits are available immediately upon joining the new sales team: Medical benefits Life insurance Dental plan Vision plan Tuition reimbursement Wellness Program Flex spending accounts PTO- paid time off Paid holidays Worker’s compensation Long and Short-term disability Supplementary Disability Insurance Retirement plans 401k Restricted Stock Options Profit Sharing Performance Bonus- based off of individual and team quarterly performance, can receive a maximum payout of 5% of base pay (weighting 20% individual + 30% team + 50% company revenue). Sales Commission- monthly commission rate of 5% available if monthly attainment rate is met (attainment rate set by company objectives) Travel/Meal reimbursement- meal reimbursement or travel per diem for business related meetings with potential clients. Annual team appreciation luncheon- all expense paid luncheon for all team members. Members will be recognized for outstanding performance levels, teamwork efforts, and accomplishments. Mobile phone comp- free use of company mobile phones to provide client service and other business related needs. Laptop comp- use of company laptop and software for completing team projects and clientele inquiries. Sales certification- free course training for improvement on sales techniques and SMEI certification. Company car/ mileage imbursement- use of company vehicle during business hours or business related engagements. Explain why your pay system will work. The contemporary pay system is in alignment with InterClean’s overall company philosophy and objectives. This performance based pay system is aggressive enough to compete in today’s competitive global market. A competitive compensation plan has the ability to attract strong recruits, retain experienced employees, and motivate employees to push performance levels. InterClean’s new strategic direction focuses largely on customer contact, therefore our compensation plan will create strong incentives to train and obtain high levels of retail selling. As team members maintain their consistency in retail selling, so does their opportunity for reward. A first-rate recognition system complements the compensation plan to counteract thoughts of discouragement found in a competitive selling environment. Describe three components of a total rewards package that would motivate employees to reach peak performance. Today the challenge is recruiting qualified, quality work candidates. Many companies are changing their benefits packages as an attraction or motivational strategy to compete for top quality work candidates. InterClean understands how potential hires consider benefits along with the job description. In today’s completive market a well designed total rewards package could be the deciding factor for top quality recruits to select our company. A reward/compensation plan should reflect the needs of its employees as well as company objectives and financial abilities. The following components should be integrated into a rewards strategy: Benefits Work-life balance Training and career opportunities These core components are essential to the endurance of an organization’s demanding business climate. Total rewards strategy coupled with a performance based philosophy provides opportunities for peak performers to increase their salary, improve career development through coaching and feedback in the performance evaluation process. Describe your compensation plans benefits to the individual as well as to the company. All team members will receive a base salary according to their job position. The base salary will be complimented by a progressive incentive bonus plan and other rewards. The team’s Sales director and Sr. managers will conduct quarterly reviews of compensation plan updates along with employee performances and company earning statements to keep our plan current and practical. The key to the success of the new multi functional sales team is to stay progressive and remain focused on the pay by performance philosophy and contemporary pay system. These advanced systems will provide incentive and opportunity for our sales team to expand its position in new and existing markets. InterClean will also enhance the ability to recognize the outstanding work of top performers, who contribute significantly to the overall success of the company. The following listing are company and team benefits: Medical benefits Dental plan Vision plan Tuition reimbursement Wellness Program Flex accounts spending PTO- paid time off Paid holidays Worker’s compensation Long and Short-term disability Supplementary Disability Insurance Retirement plans 401k Restricted Stock Options Profit Sharing Performance Bonus- based off of individual and team quarterly performance, can receive a maximum payout of 5% of base pay (weighting 20% individual + 30% team + 50% company revenue). Sales Commission- monthly commission rate of 5% available if monthly attainment rate is met (attainment rate set by company objectives) Travel/Meal reimbursement- meal reimbursement or travel per diem for business related meetings with potential clients. Annual team appreciation luncheon- all expense paid luncheon for all team members. Members will be recognized for outstanding performance levels, teamwork efforts, and accomplishments. Mobile phone comp- free use of company mobile phones to provide client service and other business related needs. Laptop comp- use of company laptop and software for completing team projects and clientele inquiries. Sales certification- free course training for improvement on sales techniques and SMEI certification. Company car/ mileage imbursement- use of company vehicle during business hours or business related engagements. Successful sales “managers have to rely on common sense when it comes to management decisions. Employee compensation should be no different. If you want employees to be innovative—reward them for new ideas. If you want employees to stay for a long time instead of training new employees every season—offer bonuses or tie their wages to their tenure. If you need employees that show up on time, work hard, and can be trusted with the most challenging of tasks—recruit those people; reward those people; promote those people. The future of your business could depend on it.” Fogleman (2004) Cascio, W. (2006). Managing human resources: Productivity, quality of work life, profits (7th ed.). New York: McGraw-Hill. Fogleman, Sarah L. (2004) Creative Compensation. Retrieved April 19, 2010 from nature.berkeley.edu/ucce50/ag-labor/7article/article33.htm