Compensation Package
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- Date Submitted: 01/04/2011 12:16 AM
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As we all know a compensation package is a pivotal and incentive mechanism that can be used to the advantage of InterClean, by creating a complete and effective package our employees will work at optimal performance , the overall process is to retain and motivate our employees. In order for InterClean to have a strategic competitive advantage it is important to have and effective compensation package . The compensation package proposed to the Human Resource Department will include two vital aspects; these are direct/indirect financial and direct/indirect nonfinancial rewards. Included on the proposal is an explanation of why this package will work, it will include the benefits towards the employee and towards the company. The last two areas that will be explained are how the package will reach performance of each employee and how this package differs from that of the parent compensation plan and why it has it differences.
The first aspect of the compensation plan is the direct financial part; this can be divided into three categories. The first category of direct financial compensation is the salary, all sales employees will have a same base salary of nine dollars per hour, the second category is commissions, commissions is to be made by taking the sum of individual sales and dividing it by and established percentage (Table 1). The last category is the bonus, it is to be given out at the end of the year after the yearly total sales are added and if they surpass $500,000 employees are given a bonus in equality, and the amount of the bonus is determined by the sales manager.
Table 1
Total Sales (individual) Percentage of Commission Amount
$20,000-$35,000 3.5% Ranging from $700.00 to $1225.00.
$35,001-$49,999 7% Ranging from $2,450 to $3,500.
$50,000+ 10% $5,000.00
The second aspect of the compensation plan is the indirect financial compensation, this category has four components. The first component is the legal benefits that the employees some of...
The first aspect of the compensation plan is the direct financial part; this can be divided into three categories. The first category of direct financial compensation is the salary, all sales employees will have a same base salary of nine dollars per hour, the second category is commissions, commissions is to be made by taking the sum of individual sales and dividing it by and established percentage (Table 1). The last category is the bonus, it is to be given out at the end of the year after the yearly total sales are added and if they surpass $500,000 employees are given a bonus in equality, and the amount of the bonus is determined by the sales manager.
Table 1
Total Sales (individual) Percentage of Commission Amount
$20,000-$35,000 3.5% Ranging from $700.00 to $1225.00.
$35,001-$49,999 7% Ranging from $2,450 to $3,500.
$50,000+ 10% $5,000.00
The second aspect of the compensation plan is the indirect financial compensation, this category has four components. The first component is the legal benefits that the employees some of...