Compensation_Plan

Inter Clean Compensation Plan Now that InterClean is embarking on a new compensation plan for the overall company I have formed a plan for my current team that I feel not only will be fair to my team, as well as boost sales but I feel this plan will also work for the company. This plan will allow the company to pay out less money to their employees when our sales are down while still encouraging employees to continue to try to hit their sales quota. The compensation plan I feel will work best for our employees as well as to motivate them to continue to sell and to increase their sales is to use a non-recoverable draw system. A non recoverable draw system gives each member of the sales team a specific amount of money every two weeks based on their average sales over the past year. If the team member makes there sales for the month or goes over their goal they will get the rest of the commission earned during the next check. If they do not meet there goals for that pay period then they do not owe the company anything. If an employee does not meet there goals two periods in a row than they are up for review and there commission percent can be decreased. IF they do not meet there goal for a third time then they owe the company that money. This will keep the team members encouraged to always meet there goals. On the other hand if an employee meets their goals for 10 out of 12 months during the year they will be up for review to increase their commission percentage. All commission percentages will be based on experience and position. Newer and lower sales employees will start out with 3% of their total sales before tax and delivery charges. As employees move up within the company their commission percentage will increase. Once an employee is a manger of a team they will receive a percentage of their team’s total sales for the time period. While this compensation plan is rewarding to employees as well as to the company it is also important to motivate our employees to continue to do their best. Along with this compensation plan we need to also add sales rewards into the package. The first rewards plan is to have team competitions within the company on a quarter bases. Which every team brings in the most commission for the quarter will receive 1% additional of their personal sales. Another incentive for the teams is to have a team lunch party for the team that sells the most of the particular product of the month. And the last motivating reward will be to have an employee of the month. This employee will be able to choose wither they would like a day off that does not interfere with their sales numbers or be treat to a special lunch with the manager of their choice. This lunch should be utilized to ask questions on how to feather improve their sales pitches or talk about other possible career moves within the company. This compensation plan benefits the employee because it allows them in so many ways to control how much money they will be bring in. It also allows them to always be able to judge where their career is going and if they are in the right path for a promotion or raise. This plan also gives the team’s incentives to do their best and to pull together as a team and help each other out. You are only as strong as your weakest link and this proves this to the teams. This plan also works out best for the company because the company puts out less money then they would if we were on a salary based pay scale and the company was not doing so well. This plan also helps the company to continue to encourage their employees to go out and do their best even in times where the company might be struggling. In a sales based company the employees and sales team are the heart of the company and they are the ones that bring in the revenue to the company. Over all I feel this plan will work great for the employees and the company it will encourage the sales reps to continue to do their best even after a hard week. While allowing the company to put out less income before it comes in. I hope you will consider my plan for compensation not only for my team but for the company as a whole. I feel this plan will continue to take this company in the wonderful direction we are heading with all the wonder and exciting new additions and changes we have made recently.