Compensation

Career Development Plan IV – Compensation Name University of Phoenix Career Development Plan IV – Compensation One of the first things to do after the merger of InterClean Inc. and EnviroTech is to consider compensation. Job Analysis and Selection, Career Develop Plan and Team Appraisal are components that can be used in desiding employee compensation. In the article Delivering Incentive Compensation Plans That Work “A good plan will encourage cooperation among staff in different functional areas, and will prompt employees to work hard and be innovative without engaging in questionable ethical behavior.” (Bolten, R.) In the United States we are a country filled with fortune five hundred companies. In order to compete for the best talent competitive pay and in some instances extrinsic perks must be used. The merger of InterClean Inc. and EnviroTech wants to offer a competitive base pay rate. In addition to the competitive base pay rate we would also like to offer sales commission and health insurance. New compensation plan for the new employment team The compensation plan that we developed will be based on merit. According to Managing Human Resources obtaining an higher rate of compensation could possibly include these components i.e. Establish high standards of performance, Develop accurate performance appraisal systems, Train supervisors in the mechanics of performance appraisal and in the art of giving feedback to subordinates, Tie rewards closely to performance, and Use a wide range of increases; Make pay increases meaningful. Initially hiring individuals focused on meeting the minimal requirements. The way will determine compensation will be based on the minimal to exceeding requirements of education and experience. As a member of the merger of InterClean Inc. and EnviroTech sales force these individuals must realize that they are part of the front line (initial contact). If sells (bring new business) are not made we can become stagnate. Entry-level sales person has a basic knowledge of the industry while meeting the minimal requirements. Sales persons who are considered to be a experienced sales person have to pose an expanded knowledge of the industry and at least five years of experience in the sales. Employees of the merger of InterClean Inc. and EnviroTech have opportunity to earn 3% sales commission. Individuals have the opportunity to earn Holiday bonus based on prior year profits. Also, the last piece of compensation plan would be in health insurance, which we feel at Enviro Tech, is a human right. According to Wage and Benefit Changes in Response to Rising Health Insurance “higher health insurance premiums must induce changes in the composition of total compensation--either in lower after-tax wages or in decreased contributions to other benefits.” (Goldman, D., Sood, N., & Leibowitz, A.) Why the pay system will work. The pay system that we developed will work because it is competitive package. The pay system I created gives employees the opportunity to strive to make it to the next level in their career. The meaning behind the next level it is gaining the discipline to move from entry to experienced level the career. If an outsider can come into the merger of InterClean Inc. and EnviroTech as an entry-level employee and make it the experienced level it shows that they are building a customer base. If the sales person is building a customer base therefore developing experience with customers and earning sales commission. Also, at the merger of InterClean Inc. and EnviroTech we want to ensure that the are employee know that the sky is the limit and if you push yourself you can go from five figures to six figures. Three components of a total rewards package The merger of InterClean Inc. and EnviroTech has three components that contribute to the total rewards package that motivates employees to reach peak performance levels. According to Benefit packages and individual behavior: choices over discrete goods with multiple attributes “An increasingly significant component of the overall compensation is the employee's benefits package.” (Van Boening, M., Blackstone, T., McKee, M., & Rutstrom, E.) The first component of compensation is the base pay rate. What contributes to base pay rate is the level of work experience, education and industry knowledge. Sales commission is the second level of compensation. Sales commission is compensation as well as a motivational tool to drive sales toward the company goals. Finally, the third level of compensation is the holiday bonuses. Holiday bonuses is the extrinsic way of given back the employees and their families around the holidays. Describing your compensation plan’s benefits to the individual as well to the company Overall, the compensation plan benefits the employee as well as the company. Here at Enviro Tech we wanted to develop a competitive plan that rivals some of the best companies in the country. With the base pay we wanted to present a wage that was decent and would draw potential experienced sales persons to our company. For those individuals that are self managed and those looking to advance their careers we set up sales commission. Sales commission benefits individuals because they earn extra money and they are not limited to the base pay. The Holiday bonus is a way of letting our employees know that we do appreciate them and what they do for the company.   References Van Boening, M., Blackstone, T., McKee, M., & Rutstrom, E. (2006). Benefit packages and individual behavior: choices over discrete goods with multiple attributes. Managerial & Decision Economics, 27(6), 511-526. http://search.ebscohost.com.ezproxy.apollolibrary.com, doi:10.1002/mde.1285  Bolten, R. (2009). Delivering Incentive Compensation Plans That Work. Financial Executive, 25(7), 52-54. http://search.ebscohost.com.ezproxy.apollolibrary.com Goldman, D., Sood, N., & Leibowitz, A. (2005). Wage and Benefit Changes in Response to Rising Health Insurance. RAND Forum for Health Economics & Policy, 8(1), - 15. http://search.ebscohost.com.ezproxy.apollolibrary.com