Compensation Plan
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Compensation Plan for Employment Team
Anastasia Rusakov
University of Phoenix
HRM
531
Tiffany Mytty-Klein
February 14th, 2011
Compensation Plan for Employment Team
Successful employers that want to stay competitive in this environment must develop stable compensation plan that motivates employees and ensures equity. Compensation is the combination of monetary and other benefits. There are two types of compensation management: direct and indirect (Cascio, 2005). Direct compensation is given at a regular interval at a definite time and includes basic salary, travel allowance, bonus, and medical reimbursements (Cascio, 2005). Indirect compensations comprised of other non cash benefits, such as an office car provided to the employee, pension contributions, health insurance, in other words it is designed to improve employee’s quality of life, promote loyalty, and reward long term employment. In this report we will analyze and describe a new direct compensation plan, why the designed pay system will work, define three components of a total rewards package that would motivate employees to reach peak performance, and finally describe compensation plan’s benefits to the individual as well as to the company.
IncterClean will offer a dynamic compensation plan with five ways to increase their income. Top retail bonus will be offered to the employees who achieve high retail sales over a four-week period. Bulk order bonus will be available to the individual who can sell at least five customized packages and solutions in one order. First order bonus is a reward that will be provided for the initial effort. During the first month of your employment you will receive an additional 5% of your sales. Team bonus will be 3% of your base salary and will be distributed to every individual when specified goals are met or exceeded by the team. In addition every employee will be eligible for leadership bonus. An individual will be paid the...
Anastasia Rusakov
University of Phoenix
HRM
531
Tiffany Mytty-Klein
February 14th, 2011
Compensation Plan for Employment Team
Successful employers that want to stay competitive in this environment must develop stable compensation plan that motivates employees and ensures equity. Compensation is the combination of monetary and other benefits. There are two types of compensation management: direct and indirect (Cascio, 2005). Direct compensation is given at a regular interval at a definite time and includes basic salary, travel allowance, bonus, and medical reimbursements (Cascio, 2005). Indirect compensations comprised of other non cash benefits, such as an office car provided to the employee, pension contributions, health insurance, in other words it is designed to improve employee’s quality of life, promote loyalty, and reward long term employment. In this report we will analyze and describe a new direct compensation plan, why the designed pay system will work, define three components of a total rewards package that would motivate employees to reach peak performance, and finally describe compensation plan’s benefits to the individual as well as to the company.
IncterClean will offer a dynamic compensation plan with five ways to increase their income. Top retail bonus will be offered to the employees who achieve high retail sales over a four-week period. Bulk order bonus will be available to the individual who can sell at least five customized packages and solutions in one order. First order bonus is a reward that will be provided for the initial effort. During the first month of your employment you will receive an additional 5% of your sales. Team bonus will be 3% of your base salary and will be distributed to every individual when specified goals are met or exceeded by the team. In addition every employee will be eligible for leadership bonus. An individual will be paid the...