Base salary will be evaluated annually and adjustments made for inflation were necessary and financially feasible. It will be important that InterClean does not fall behind in salaries in order to stay competitive recruiting, retaining, and motivating employees (Casio, 2006, p. 433).
- Individual Objectives - Monthly objectives will be assigned to each sales representative to achieve. Criteria will be based on but not limited to new accounts opened, new product placements, customer service satisfaction, and increase in sales. Maximum payout monthly is $2000 for 100% achievement. Based on the percentage of goals reached will determine percentage of payout.
- Team Objectives – Team goals will be established based on the same criteria as monthly objectives and will be paid out quarterly. Payout will be $1000 if all team objectives are met at least at 90% else payout is forfeited.
- Quarterly/Annually Bonuses – Based on the organizations financial strength and profitability bonuses will be paid out quarterly and annually. Overall individual and team evaluations will be factored in. Typical ranges for quarterly will be $500-$1500 and annually from $1000-$5000.
- Spot Bonuses – If employee’s performance has been exceptional he or she has gone above and beyond, small bonuses will be used to recognize and reward that employee for noteworthy actions (Casio, 2006, p. 441). These recognition rewards will range from $50-$100 and will typically be a gift card.
Why Pay System Will Work
An ideal compensation system works best when adopted by the employees when they have participated in the performance management process (U.S. Office of Personnel Management [OPM], 2007, p. 1). This compensation proposal was designed based on input from employees and supervisors during meeting and surveys when asked “what is important to them.” This helps the employees understand the goals of the organization, what needs to be done, why it needs to be done, and how well it needs to be done. A motivator for employees is to be compensated fairly bases on their contributions to the organizations success. This plan is designed to be performance based providing opportunities for employees to be compensated based on their skills and knowledge and merit. Another key factor is providing employee’s security by incorporating an “income floor.” This guarantees a minimum amount of compensation that the salesperson earns within a specified period (HR Answers Inc [HRI], n.d., p. 1).
Total Rewards Package
Compensation has become a more complicated issue than just deciding how to pay employees. In addition to salary, employers must consider many other components in order to motivate and to maximize performance (All Business [D&B], 2009, p. 1). In today’s work environment employees are concerned with improving their quality of life. As long as employees perceive that their total compensation is equitable and that their benefit options are fair, benefit programs can provide employees with a genuine level of satisfaction (Casio, 2006, p. 493). Three components that are important factors when considering the overall compensation package are:
- Competitive, fair, equitable pay structures and by implementing programs to encourage and reward performance.
- Non financial rewards include everything in a work environment that enhances a worker’s sense of self respect, opportunities for training and personnel development, and effective leadership (Casio, 2006, p. 418).
- Benefit package that provides for security for the employee and family such as health insurance, life insurance, retirement plans and paid time off.
Compensation Plan’s Benefits
InterClean’s benefit plan provides the freedom to choose among many options. Each employee can design a individual plan tailored to fit his or her current and future needs, and budget.
- Health Insurance – A one size fits all medical coverage does not suit the needs of everyone. Employees have the option to select a medical/dental/vision health package that suites his or her needs. It’s a win/win for the employee and organization, because our plan is an employer/employee cost share, employees with no dependants can choose a lower cost premium which equates to a saving for the organization.
- Employee Life insurance – Employees will receive twice their annual salary paid by the employer and options to purchase additional amounts at a reduced cost. This gives the employee peace of mind with translates into productivity and loyalty to the organization.
- Flexible Spending Accounts – HealthCare and Dependent Care accounts provide a way to lower taxable income by making pre-tax contributions to individual spending accounts. Providing this drives employee satisfaction up.
- Retirement 401K Plan – Annually, InterClean will match up to 4%, of his or her contributions to your 401K retirement plan. Employees receive the benefit of having their contribution made with pre-tax dollars and the organization benefits by not having to 100% fund a pension.
- Paid Time Off (PTO) – InterClean’s paid time off policy provides you with the flexibility to help you meet your personal needs. Based on years of service you receive a set amount of PTO days annually as well as all major holidays. This benefits the organization by doing away with a sick policy. All days off are considered PTO.
- Life Management Program – InterClean employees and their eligible family members can obtain confidential counseling from a broad range of subjects like personal, family, financial, parenting and some convenience services like assistance finding daycare free of charge. The organization covers this benefit in order to help improve the employee’s total quality of life and in return receives a loyal and less stressed worker.
- Tuition Reimbursement – Recognizing the mutual benefits derived from personal growth, increased work competence, and a highly trained workforce, InterClean will provide reimbursement for qualified education.
References
All Business (2009). Key Compensation Components. Retrieved June 15, 2009, from allbusiness.com
Casio, W. (2006). Analyzing Workand Planning for People. In Managing Human Resources (pp. 154-195). : .
HR Answers Inc (n.d.). How to Develope a Compensation Plan. Retrieved June 15, 2009, from salarysource.com
U.S. Office of Personnel Management (2007). Performanance Management Program. Retrieved June 15, 2009, from opm.gov
