InterClean Compensation Plan

Essay by honeybrown01University, Master'sA, May 2010

download word file, 3 pages 0.0

� PAGE �1� Compensation Plan � PAGE �2�

New Compensation Plan Proposal


New Compensation Plan Proposal

For the past few months tremendous progress has been made in the merger of InterClean, Inc. and Enviro Tech. We have completed the training and mentoring program and the performance and career management plan for the sales department. To complete the merger and transition, it is necessary to develop a new compensation plan. This proposal will discuss the new compensation plan for InterClean, Inc. employee's, reasons this pay system will work, the three components of the total rewards package, and describe the plan's benefits to the individual as well as the company.

The New Sales Compensation Plan

The compensation plan will provide a basis for establishing an annual salary and incentive compensation to motivate, attract, and retain our employees. The plan is established to set clear guidelines for performance and reward employees who achieve excellence.

This plan will also be in line with InterClean, Inc.'s core values and mission. To be effective, organizational reward systems should provide four things: a sufficient level of rewards to fulfill basic needs, equity with the external labor market, equity within the organization, and treatment of each member of the organization in terms of his or her individual needs (Cascio, 2005).

Total Rewards Package

The total rewards package includes the necessary tools the employer may use to attract, motivate, and retain employees. Total Rewards also include what the employee perceives to be of value. Three components of the total rewards system are total compensation, benefits, and career and personal growth.

Total Compensation

Total compensation is the key component of the total rewards model. This will include the employee's base salary plus incentives. The incentives will include commission for the sales associates be based on net sales or gross...