Career Development Plan Part Iv
Career Development Plan Part IV
531 HRM
3 March 2010
Career Development Plan Part IV: Compensation
Introduction:
The final stages of formalizing the career development plan for the sales department is almost complete with the exception of the approved compensation proposal. This compensation plan will promote attracting the industries most talented employees, retaining the company’s most experienced performers, and motivating each individual to meet the company’s strategic goals in the process. The objective in describing this compensation package is for senior leadership to approve these methods behind employee compensation and to appropriate the required resources to execute this plan.
Compensation Plan The new compensation plan for the sales team is founded on labor research and statistics to establish a market-based pay structure for the employees. In understanding the specific details of the job requirements along with needing to retain a core of experienced personnel management determined to implement a three-tier pay system to establish different experience levels of salespeople.
Apprentice: 0 - 3 years the annual base salary is $25,000
Journeyman: 3 - 5 years the annual base salary is $30,000
Craftsman: 5 years and up the annual base salary is $35,000
Another area that is part of the compensation plan is an incentive program to motivate employees to perform at high levels for the sales department. A sales commission program will be directly tied to the employee 's base salary that will increase his or her ability to earn a substantial amount above the base salary amount through performance. This commission incentive is built around a mix of 100% of the base salary plus a 10% commission rate for all monthly sales. The plan is designed around the best performers with unlimited earning capabilities while allowing those reaching the targeted base-line sales to earn a fair salary. To illustrate this plan a typical
531 HRM
3 March 2010
Career Development Plan Part IV: Compensation
Introduction:
The final stages of formalizing the career development plan for the sales department is almost complete with the exception of the approved compensation proposal. This compensation plan will promote attracting the industries most talented employees, retaining the company’s most experienced performers, and motivating each individual to meet the company’s strategic goals in the process. The objective in describing this compensation package is for senior leadership to approve these methods behind employee compensation and to appropriate the required resources to execute this plan.
Compensation Plan The new compensation plan for the sales team is founded on labor research and statistics to establish a market-based pay structure for the employees. In understanding the specific details of the job requirements along with needing to retain a core of experienced personnel management determined to implement a three-tier pay system to establish different experience levels of salespeople.
Apprentice: 0 - 3 years the annual base salary is $25,000
Journeyman: 3 - 5 years the annual base salary is $30,000
Craftsman: 5 years and up the annual base salary is $35,000
Another area that is part of the compensation plan is an incentive program to motivate employees to perform at high levels for the sales department. A sales commission program will be directly tied to the employee 's base salary that will increase his or her ability to earn a substantial amount above the base salary amount through performance. This commission incentive is built around a mix of 100% of the base salary plus a 10% commission rate for all monthly sales. The plan is designed around the best performers with unlimited earning capabilities while allowing those reaching the targeted base-line sales to earn a fair salary. To illustrate this plan a typical
References: Cascio, W. (2006). Managing Human Resources: Productivity, Quality of Work Life, Profits. Retrieved from Cascio, W, HRM531 - Human Captial Management website. University of Phoenix. (2010). InterClean, Inc. [Scenario]. Retrieved from University of Phoenix, Simulation, HRM531 - Human Captial Management website. Compensation Consulting Consortium. (n.d.). Trends and Issues: Market-Based Pay Systems. Retrieved from http://www.3ccomp.com/TrendsIssues/Q4No3.php Obringer, L.A. (n.d.). How Employee Compensation Works. How Stuff Works. Retrieved from http://money.howstuffworks.com/benefits.htm Duchon, M. (2007). Compensation: Total Reward Plans that Attract, Retain, and Motivate. Construction Business Owner. Retrieved from http://www.constructionbusinessowner.com/topics/people-management/compensation-total-reward-plans-that-attract-retain-and-motivate.html