University of Phoenix531 HRMJuly 13, 2009The purpose of this proposal is to create a new compensation plan that would be beneficial for InterClean and their employees. To create the best possible plan, its imperative that management and the employees have a concise perception of the business outcome the company is trying to accomplish. InterClean goal is to sell the products and provide our employees with an attractive compensation package and benefits plan.
InterClean will have to classify the types of employee behavior and results to be rewarded as well as design the formulas used to fund and distribute incentive pay. When calculating a successful sales compensation plan, the company will have to make some alternatives about the plan's overall structure: Such question should be asked:Ã¢ÂÂ¢Will it offer a base salary and incentive plan?Ã¢ÂÂ¢If it's the latter, what percentage is each component of the total targeted income?Ã¢ÂÂ¢Will the plan be commission?Ã¢ÂÂ¢Will incentive earnings be given in dollars or as a profit of base salary?Ã¢ÂÂ¢How does the company ensure that the plan meets their monetary criteria?Ã¢ÂÂ¢Does it meet the desires of the entire company and not just those in the sales department?Ã¢ÂÂ¢Is the sales compensation plan competitive in the market?Ã¢ÂÂ¢Will the compensation plan be a cost-effective development for the company?InterClean believes that evaluation of performance should be simple, comprehensive of the employee's area of accountability and be linked to the sales strategy.
Incentive rewards are designed to be matching with the employee efforts and contributions made. Exceptional accomplishments entitle for excellent rewards, standard accomplishments call for average rewards, under average accomplishments call for below average rewards. InterClean's goal is to implement a pay system that will be competitive yet cost effective for the company's growth and their employees.
InterClean does not consider pay as the most vital concern to attract and...