Career Development Plan Part Iv—Compensation

Topics: Motivation, Employment, Incentive Pages: 3 (796 words) Published: January 17, 2011
Their only a couple more stages left in forming the career development plan. This letter will explain the new compensation plan for the sales team at InterClean. It will outline the new compensation plan and describe how it will help motivate employee performance, describe our total rewards program, and explain how this program will benefit the individual and InterClean. Compensation Plan

The new compensation for the sales team will include both financial and non financial benefits. “An organizational reward system includes anything an employee values and desires that an employer is able and willing to offer in exchange for employee contributions more specifically such compensation includes both financial and non financial rewards.” (Cascio, 2005) Financial rewards include direct payments to salary as well as indirect payments to salary such as employee bonuses. Non financial rewards include day to day work environment appearances that enhance an employee sense of self respect. For example, training opportunities and involvement in decision making. The new compensation plan will be a market – based pay structure for the employees. When an employee understands their specific detail of their job description it is a key tool in the destination of their pay system. We have already identified the important characteristics of each job; next step is to determine how much InterClean is willing to pay for such a skill. Each sales team member will have a set base salary of $35,000. From this salary a commission incentive program will help motivate each employee to perform at their highest level of achievement. An incentive programs goal is to tie pay increase to each employee’s level of job performance. When a sales commission program is involved with pay it will increase the employee’s drive to earn a abundant amount above the base salary through performance. The commission incentive program is based 100% on base salary plus a 10% commission rate for monthly sales....
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