Compensationplan
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- Date Submitted: 06/10/2010 04:13 AM
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Compensation Plan Proposal for InterClean’s Sales Staff
Nimmi Tewani
HRM/531
May 30th, 2010
Pat Murray
Compensation Plan Proposal for InterClean’s Sales Staff
Employers who want to succeed in this increasingly competitive environment must have a well-designed compensation plan that motivates employees, controls compensation costs, and ensures equity. To ensure both internal and external equity, employers must establish an effective compensation administration program. To do this, employers must conduct:
* Job analysis (thoroughly analyze and define each job)
* Job evaluation (determine what jobs are worth on an absolute basis and relative to other jobs in the organization)
* Job pricing (establish rate ranges; that is, minimum, midpoint, and maximum dollar values for each job)
An effective employee incentive program is mandatory for any business in these days of high attrition rates and a serious dearth of talent. Companies spend sizable sums on their retention strategies, which may focus on a combination of ways to inculcate loyalty among employees - compensation, training and career growth being a few.
A growing number of employers are incorporating performance-based compensation plans to boost productivity and maximize their return on investment (ROI) in compensation. These types of plans are designed to reward employees who produce. For past few years, because of hiring freezes and a larger supply of sales force, many organizations did not have to raise salaries much to recruit and retain top talent. Now that the economy and job market are gaining steam, firms are once again assessing their compensation and benefits packages more frequently to avoid losing current and...
Nimmi Tewani
HRM/531
May 30th, 2010
Pat Murray
Compensation Plan Proposal for InterClean’s Sales Staff
Employers who want to succeed in this increasingly competitive environment must have a well-designed compensation plan that motivates employees, controls compensation costs, and ensures equity. To ensure both internal and external equity, employers must establish an effective compensation administration program. To do this, employers must conduct:
* Job analysis (thoroughly analyze and define each job)
* Job evaluation (determine what jobs are worth on an absolute basis and relative to other jobs in the organization)
* Job pricing (establish rate ranges; that is, minimum, midpoint, and maximum dollar values for each job)
An effective employee incentive program is mandatory for any business in these days of high attrition rates and a serious dearth of talent. Companies spend sizable sums on their retention strategies, which may focus on a combination of ways to inculcate loyalty among employees - compensation, training and career growth being a few.
A growing number of employers are incorporating performance-based compensation plans to boost productivity and maximize their return on investment (ROI) in compensation. These types of plans are designed to reward employees who produce. For past few years, because of hiring freezes and a larger supply of sales force, many organizations did not have to raise salaries much to recruit and retain top talent. Now that the economy and job market are gaining steam, firms are once again assessing their compensation and benefits packages more frequently to avoid losing current and...