Now that we have structured our new team, identified their roles, identified ways to manage their performance and created an appraisal system we are now proposing a new compensation plan. This part will outline the plan, describe how it will help motivate employee performance, describe our total rewards program and outline how this program will benefit the individual and InterClean. Account Executive Financial Compensation Plan
Compensation structures can be broken down into two distinct categories, financial and non-financial (Cascio, 2006). This section overviews the financial compensation plan for account executives, which includes pay and benefits. Account executive pay will be primarily commission based. Each account executive will receive a base salary at minimum wage, with the rest of their salary coming from commission. We feel that a generous commission structure will motivate performance because pay will have a direct correlation with sales volume. We structured our proposed commission plan to reflect InterClean new strategic direction (University of Phoenix, 2007), and how employees are rated in their quarterly appraisal. This means a focus on retention, up-selling and volume. Account executives will receive 8% commission on sales for the first six-months of revenue. 10% commission on sales after six-months of continuous revenue. 13% commission on sales after one-year of continuous revenue. 13% commission on up-sells and account executives that meet their quarterly sales volume will also receive a bonus equaling 3% of total revenue earned.
New Business Account Executive,
The New Business Account Executive has different goals, and therefore a different pay scale will apply. He or she will receive a base salary of $30,000 per year, plus a 3% quarterly commission on revenues earned from the accounts he or she acquired. We feel that this structure will adequately reflect the difference between new account acquisition and...