Hrm 531 Compensation Plan

Only available on StudyMode
  • Download(s) : 482
  • Published : March 1, 2013
Open Document
Text Preview
Compensation Plan
Teresa San Nicolas
HRM 531 – Human Capital Management
January 31, 2011
Janis White

InterClean has merged with EnviroTech in order to evolve with the industry and providing not only cleaning products, but also solutions and services. This merger is an opportunity for InterClean to reposition itself and expand their understanding of the marketplace, customer’s needs, and to break through into new markets. The company’s goal is to provide a full spectrum of cleaning services and solutions that will become our major avenue for sales. In order to do that the focus needs to be on attracting, retaining and motivating the best talent, which can be done by establishing a superior training plan and offering competitive benefits and compensation packages. Pay System

In order to control costs InterClean’s pay system should channel more dollars into incentive awards rather than fixed salaries. “Such variable-pay systems almost guarantee cost control” (Cascio, p. 417). The pay system for employees will be a pay-for-performance theme with bonus payouts. Not only will this pay plan keep costs lower than other pay plans, but it will also help to encourage healthy competition among employees and increase productivity. “Almost a third of American workers whose pay is not tied in some way to their performance believe they would be more productive if they had a greater interest in the companies that employ them through benefits such as profit sharing, according to a survey from temporary staffing and outsourcing firm Kelly Services. (Miller, p. 1)” Three Components of the Reward Package

Compensation packages include both financial and nonfinancial rewards. The base pay with the bonus payouts would cover the financial rewards. “Nonfinancial rewards include everything in a work environment that enhances a worker’s sense of self-respect and esteem by others (e.g., work environments that are physically, socially, and mentally healthy;...
tracking img