Compensation Plan
- Submitted by: Nichell16
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- Date Submitted: 05/24/2010 02:00 PM
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Inter Clean Compensation Plan
Now that InterClean is embarking on a new compensation plan for the overall company I have formed a plan for my current team that I feel not only will be fair to my team, as well as boost sales but I feel this plan will also work for the company. This plan will allow the company to pay out less money to their employees when our sales are down while still encouraging employees to continue to try to hit their sales quota.
The compensation plan I feel will work best for our employees as well as to motivate them to continue to sell and to increase their sales is to use a non-recoverable draw system. A non recoverable draw system gives each member of the sales team a specific amount of money every two weeks based on their average sales over the past year. If the team member makes there sales for the month or goes over their goal they will get the rest of the commission earned during the next check. If they do not meet there goals for that pay period then they do not owe the company anything. If an employee does not meet there goals two periods in a row than they are up for review and there commission percent can be decreased. IF they do not meet there goal for a third time then they owe the company that money. This will keep the team members encouraged to always meet there goals. On the other hand if an employee meets their goals for 10 out of 12 months during the year they will be up for review to increase their commission percentage.
All commission percentages will be based on experience and position. Newer and lower sales employees will start out with 3% of their total sales before tax and delivery charges. As employees move up within the company their commission percentage will increase. Once an employee is a manger of a team they will receive a percentage of their team’s total sales for the time period.
While this compensation plan is rewarding to employees as well as to the company it is also important to motivate our...
Now that InterClean is embarking on a new compensation plan for the overall company I have formed a plan for my current team that I feel not only will be fair to my team, as well as boost sales but I feel this plan will also work for the company. This plan will allow the company to pay out less money to their employees when our sales are down while still encouraging employees to continue to try to hit their sales quota.
The compensation plan I feel will work best for our employees as well as to motivate them to continue to sell and to increase their sales is to use a non-recoverable draw system. A non recoverable draw system gives each member of the sales team a specific amount of money every two weeks based on their average sales over the past year. If the team member makes there sales for the month or goes over their goal they will get the rest of the commission earned during the next check. If they do not meet there goals for that pay period then they do not owe the company anything. If an employee does not meet there goals two periods in a row than they are up for review and there commission percent can be decreased. IF they do not meet there goal for a third time then they owe the company that money. This will keep the team members encouraged to always meet there goals. On the other hand if an employee meets their goals for 10 out of 12 months during the year they will be up for review to increase their commission percentage.
All commission percentages will be based on experience and position. Newer and lower sales employees will start out with 3% of their total sales before tax and delivery charges. As employees move up within the company their commission percentage will increase. Once an employee is a manger of a team they will receive a percentage of their team’s total sales for the time period.
While this compensation plan is rewarding to employees as well as to the company it is also important to motivate our...