Interclean Compensation Plan

Essay by kara1University, Master'sA+, March 2010

download word file, 5 pages 0.0

InterClean Compensation Proposal

Julie Dean

University of Phoenix

HRM 531

December 21, 2009


TO: HR Department Manager FROM: Julie Dean SUBJECT: Proposal for the New Compensation Plan

DATE: December 21, 2009

Over the past few weeks we have made a lot of progress in the merger of InterClean and Enviro Tech. We have completed the job analysis and selection requirements, the training and mentoring plan and the performance and career management plan for the new Sales Department. To complete the transition process, we must now turn our efforts to develop a new compensation plan for the members of the sales team. Upper management has directed me to develop a new compensation plan and submit it to you for approval. This proposal discusses the new compensation plan for the sales team, reasons why this pay system will work, explains three components of the total rewards package and describes the plan's benefits to individual team members and to the company.

The New Sales Compensation Plan

I propose that we develop an appropriate compensation plan to attract, retain, and motivate our employees. This plan must be in line with our new mission and business strategy. It must be based on what the company can afford to pay in relation to pay scale, and company competitiveness. The new pay system must be based on fairness and equity. The three elements of equity cover internal equity relating to the actual worth of the job to the organization, external equity covering wages based on market rates outside the organization and individual equity which considers if each individual's rate of pay is fair and relative to that of others that do the same job within a team (Cascio, 2006). To develop the new compensation system InterClean will have to look at assigning monetary value to each...