Hrm/531 Career Development Iv
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Career Development Plan IV – Compensation
Jeffrey Gaspard
HRM/531
December 15, 2009
Career Development Plan: Compensation
As InterClean’s moves forward with the merger with EnviroTech (University of Phoenix, 2009, p. 1) management must consider what changes if any will is needed to their current compensation plan. There are several compensation plans companies can choose from but what must be in the minds of executives is what plan will motivate employees to be most productive. Lincoln Financial chooses to take the stance of, pay and promote employees for productivity and only productivity (Casico, 2006). This essay will investigate which compensation plan best suites the continued growth of InterClean’s in their new direction.
Compensation Plan
With InterClean’s decision to become a product base organization as opposed to service changes to the current compensation packet may be in order. Outside sales employees will be asked to create business rather than simply sustaining current business opportunities. As a result outside sales will work under a competency-based pay system with the option for financial in the form of commission for meeting long and short-term sales goals. Competency-based pay states that the employer will pay employees based on their skills and knowledge rather than their production (Casico, 2006). Because this is a new endeavor, it seems best that the company choose this direction and consider strictly commission pay only once they can access average sales levels in the future.
Inside sales representatives will serve as support structure for the outside sales to follow up and provide customers with immediate assistance. For that reason, they will be given market-based pay while operating under a nonfinancial reward system (Casico, 2006). Because inside sales does not generate sales consistently, they will receive annual raises but have the opportunity to receive other incentives (concert tickets, gift cards, awards.etc) when the...
Jeffrey Gaspard
HRM/531
December 15, 2009
Career Development Plan: Compensation
As InterClean’s moves forward with the merger with EnviroTech (University of Phoenix, 2009, p. 1) management must consider what changes if any will is needed to their current compensation plan. There are several compensation plans companies can choose from but what must be in the minds of executives is what plan will motivate employees to be most productive. Lincoln Financial chooses to take the stance of, pay and promote employees for productivity and only productivity (Casico, 2006). This essay will investigate which compensation plan best suites the continued growth of InterClean’s in their new direction.
Compensation Plan
With InterClean’s decision to become a product base organization as opposed to service changes to the current compensation packet may be in order. Outside sales employees will be asked to create business rather than simply sustaining current business opportunities. As a result outside sales will work under a competency-based pay system with the option for financial in the form of commission for meeting long and short-term sales goals. Competency-based pay states that the employer will pay employees based on their skills and knowledge rather than their production (Casico, 2006). Because this is a new endeavor, it seems best that the company choose this direction and consider strictly commission pay only once they can access average sales levels in the future.
Inside sales representatives will serve as support structure for the outside sales to follow up and provide customers with immediate assistance. For that reason, they will be given market-based pay while operating under a nonfinancial reward system (Casico, 2006). Because inside sales does not generate sales consistently, they will receive annual raises but have the opportunity to receive other incentives (concert tickets, gift cards, awards.etc) when the...