Interclean_Compensation_Plan

InterClean Compensation Plan The merger between InterClean and EnviroTech is now complete. It is our desire to catapult this organization towards becoming the industry leader in industrial cleaning and sanitation. Management recognizes that in order to do so, our most valuable asset must be protected, which is the InterClean employee. With future profitability resting upon the shoulders of the employees, management is proposing a new and improved compensation plan for InterClean’s employees. Employee Compensation Plan The employee compensation plan for wages and salaries will be derived from the point method of job evaluation. Through this job analysis instrument, jobs will be ranked in terms of their overall worth, a factor comparison method whereby rates of a sample of equally compensated jobs are divided among knowledge and skill set requirements, and wage/salary surveys of similar jobs to determine median compensation rates for each job (Robinson, 1974). Once this information is compiled and reviewed, points will be assigned to each job across each compensable factor and then totaled. Job worth is determined as a result of this method and ranked in order form of highest to lowest point total. This method has been used to successfully and fairly establish compensation rates that are comparable to the pay of others within this profession. This method works because it leaves the company with the understanding that it is paying employees consistently with what is expected for the job and would not allow for employees to be over-paid or under-paid. InterClean prides its self on having the industry’s most productive sales force. It is the sales team that drives productivity for the organization. Therefore, in addition to the base salaries provided through the point method, our sales professionals will be eligible for additional commission pay based upon performance appraisals which will measure an employee’s sales volume against quotas and goals set by the management team. This method will prove valuable for both the employee and management. The employee benefits from working in a productive manner and acquiring additional commission, thus increasing his or her pay. The organization benefits because increased productivity (in the form of increased closed sales) directly affects the organization’s bottom-line performance (Boles, 1995). Salespersons would understand that they would be compensated for exceeding in the areas of efficiency and productivity, and would not assume that if they produced mediocre sales volumes that they would be rated highly. This compensation would function as motivation to exceed sales goals set for the team, offering each employee the incentive to constantly perform well (Boles, 1995). Total Rewards Plan While the complete Flexible Benefits Plan is designed with the employees needs in mind, we will highlight only a few components of the total rewards package that will be included in the benefits package offered to every InterClean employee. The first component is enrollment in the InterClean retirement plan. The company pays for the plan and every employee is enrolled after thirty days of employment with the company. InterClean employees become vested in this plan after 5 years of continuous service with the company. The employee may be eligible to retire for service without a reduction of benefits at the age of 55 with at least 30 years of continuous service or at the age of 65. The second component of the Total Rewards Plan is the Flexible Benefits Plan. The plan allows employees to enroll in medical and dependent care flexible reimbursement accounts whereby they may set aside part of their salary on a pre-tax basis for various out of pocket expenses each pay period. These accounts may be used for additional healthcare needs that are not covered by traditional health insurance plans. Dependent care plans are used to reimburse eligible dependent self-care expenses. This account allows employees to work, while providing excellent care to dependents. The third component of the Total Rewards Plan is the Employee Wellness Plan. This plan offers various health promotion programs to employees at a discounted rate. Employees make take advantage of reduced rates for Weight Watchers as well as several on-site health and fitness plans. The plan offers reduced rates for stress management courses and local fitness club memberships. This plan is provided in an effort to promote healthy living in addition to work-life balance among InterClean employees. InterClean recognizes that health living is essential to reduced turnover rates and increased employee retention rates. Conclusion In conclusion, offering a benefits package of this nature may prove to be somewhat costly to the company in the long run. However, the management staff is passionate about providing the best for our employees. Management has reviewed this package in its entirety and feels that is represents an appropriate compensation plan for our employees. Clear guidelines have been imposed so that employees are aware of what is expected to receive maximum incentives offered by the organization. The method for deriving compensation has been tested and tried by many different companies within this industry and it works in a cost-effective manner. Therefore, we propose that the Human Resources Department carefully considers this benefits plan proposal for immediate implementation.