Compensation Plan
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Running head: COMPENSATION PLAN
Compensation Plan/ Originally submitted August 8, 2010
Sylvia Daniels
Colorado Technical University
Augustine Kange/ Jennifer Young
HRM415-1004B
December 3, 2010
Abstract
The VP of Sales and Marketing is concerned about the sales team at Lansing-Smith Corporation, the VP feel that the pay structure is affect the sales teams, because there is a lack of motivation and sales are decreasing in order for the company to continue to grow the VP would like some recommendations on a compensation plan that would motivate the sale teams.
There are other strategies for compensation and pay plans, such as bonuses that may be offered annually and this not part of the base pay, another is spot bonuses which is pay to employees based on outstanding performance that could range from $100 to $1,000 keeping the team competitive by setting goals and rewarding them when they have reached their goals will increase productivity.
Another way would be to offer stock options, better health care and educational assistance, so that they feel they are a part of the company. In order for Lansing-Smith to be competitive the company has to offer a compensation package that will motivate the sale teams in order to meet the goals of the company. “The overall purposes of providing compensation are to attract, retain and motivate employees” (Mondy, 2010).
“Failure to maintain a culture of employee motivation will not lead a company toward achieving its goals, but will instead foster mediocrity and apathy among the team. Companies that are most successful at keeping their employees motivated to exceed expectations have gone beyond implementing performance standards and rewards” (Lisboa). Employees need feedback they want to know how they are performing on the job, by providing a positive environment for the employees and to ensure them that their opinions are important to the company.
The are several ways that managers can learn effective...
Compensation Plan/ Originally submitted August 8, 2010
Sylvia Daniels
Colorado Technical University
Augustine Kange/ Jennifer Young
HRM415-1004B
December 3, 2010
Abstract
The VP of Sales and Marketing is concerned about the sales team at Lansing-Smith Corporation, the VP feel that the pay structure is affect the sales teams, because there is a lack of motivation and sales are decreasing in order for the company to continue to grow the VP would like some recommendations on a compensation plan that would motivate the sale teams.
There are other strategies for compensation and pay plans, such as bonuses that may be offered annually and this not part of the base pay, another is spot bonuses which is pay to employees based on outstanding performance that could range from $100 to $1,000 keeping the team competitive by setting goals and rewarding them when they have reached their goals will increase productivity.
Another way would be to offer stock options, better health care and educational assistance, so that they feel they are a part of the company. In order for Lansing-Smith to be competitive the company has to offer a compensation package that will motivate the sale teams in order to meet the goals of the company. “The overall purposes of providing compensation are to attract, retain and motivate employees” (Mondy, 2010).
“Failure to maintain a culture of employee motivation will not lead a company toward achieving its goals, but will instead foster mediocrity and apathy among the team. Companies that are most successful at keeping their employees motivated to exceed expectations have gone beyond implementing performance standards and rewards” (Lisboa). Employees need feedback they want to know how they are performing on the job, by providing a positive environment for the employees and to ensure them that their opinions are important to the company.
The are several ways that managers can learn effective...