COMPENSATION PLAN

Compensation Plan

Compensation Plan

Developing an effective sales compensation plan is a crucial piece of the career management process. No matter if, the business is family owned or ran by a major corporation, an effective well-defined compensation plan can help avert worker disputes, frustration, and turnover (SS, 2009). The goal of InterClean Inc sales department is to attract new and retain highly qualified employees through the company's compensation plan.

The intent: reward employees based on performance, prompt organizational allegiance, and create a specific business environment. The new sales team salary was determined by using a combination of performance, and seniority. Additionally, because benefits are vital to compensation, the sales department has included several organizational incentives to bolster efficiency of the compensation plan.

The Plan

Starting pay: new employees will start at the lower end of the pay range, unless new hires have skills in huge demand or expertise significantly above the minimum. The pay range for sales personnel will span from $25,000 to $60,000 annually. Additionally, sales personnel will earn commission on sales made.

Increases:

Promotion increases: are for employees who move between jobs and the new jobs have a higher pay grade and or range.

Step increases: based primarily on time in the company or a combination of company time and performance.

Merit increases: Pay based on performance.

Appraisals: The sales department will use performance appraisals as a complete measurement of a team member's productivity or outcome, considering only job-related behavior and not personality traits. Additionally, appraisal will be based on the objective job standards developed for the appraisal system.

Incentives:

Profit Sharing: InterClean Inc will contribute a portion of its annual pre-tax profits and distribute among eligible employees. Implementation of the plan and cost of the plan will rise or fall based the organization's profits (HR-G, 2009).

Gain Sharing: InterClean Inc will share organization gains with ...