Compensation Plan
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Akinlua Oludolapo Morayo
University of Phoenix
Week 5
Individual Assignment
Career Development PlanIV
(Compensation)
HRM531
Instructor: Deborah Jones
April 30, 2010.
Compensation Plan
Compensation entails paying employees and enticing him/ her to continue working for your company. It is a critical facet of any manager's job and goes beyond straight salary. It includes benefits, perks, stock options, etc. (John, 2010). In today’s challenging and unpredictable economic market, companies are trying to redefine sales strategies, incentives, and pay compensation. This has become very important because of the way it affects the lifestyle of the employees in a company. To set up a compensation plan, the company will have to update its job descriptions, institute a job evaluation method, conduct pay surveys and develop a pay structure (Cascio, 2004).
However, taking the company InterClean as a case study, there are certain criteria that will be focused on in creating a compensation plan for the employees that include: -compensation plan, pay system, total rewards package, and compensation plan benefits to the employees and the company.
• Compensation plan for the new employment team:
This plan will be classified into three stages. The first stage is building up the knowledge and skills of the employees with motivation in performing well on his/her job and contribute to the organizational performance. The second stage will be based on the employee’s income. It will be in form of short and long term incentives.
- For short term incentives: Periodic bonuses (Quarterly) when sales quota is reached.
- For long term incentives: Annual bonuses when the company has a profitable year.
The third stage will be based on Achievements and Career development awards. This will entail promotions for further career, medical benefits life insurance, annual payments and pension plan....
University of Phoenix
Week 5
Individual Assignment
Career Development PlanIV
(Compensation)
HRM531
Instructor: Deborah Jones
April 30, 2010.
Compensation Plan
Compensation entails paying employees and enticing him/ her to continue working for your company. It is a critical facet of any manager's job and goes beyond straight salary. It includes benefits, perks, stock options, etc. (John, 2010). In today’s challenging and unpredictable economic market, companies are trying to redefine sales strategies, incentives, and pay compensation. This has become very important because of the way it affects the lifestyle of the employees in a company. To set up a compensation plan, the company will have to update its job descriptions, institute a job evaluation method, conduct pay surveys and develop a pay structure (Cascio, 2004).
However, taking the company InterClean as a case study, there are certain criteria that will be focused on in creating a compensation plan for the employees that include: -compensation plan, pay system, total rewards package, and compensation plan benefits to the employees and the company.
• Compensation plan for the new employment team:
This plan will be classified into three stages. The first stage is building up the knowledge and skills of the employees with motivation in performing well on his/her job and contribute to the organizational performance. The second stage will be based on the employee’s income. It will be in form of short and long term incentives.
- For short term incentives: Periodic bonuses (Quarterly) when sales quota is reached.
- For long term incentives: Annual bonuses when the company has a profitable year.
The third stage will be based on Achievements and Career development awards. This will entail promotions for further career, medical benefits life insurance, annual payments and pension plan....