Employee Compensation

Topics: Motivation, Reward system, Brain stimulation reward Pages: 2 (307 words) Published: February 1, 2011
A great sales team and the right compensation plan to keep sales people motivated is critical to helping business grow and prosper (Daniel, 2008). InterClean will create a new compensation plan and the goal is to reward sales success while motivating increased sales performance and providing a competitive, yet affordable reward levels. Rewards bridge the gap between organizational objectives and individual expectations and aspirations. To be effective, the new reward system will provide (1) a sufficient level of rewards to fulfill basic needs, (2) equity with external labour market, (3) equity within the organization, and (4) treatment of each member of the organization in terms of his or her individual needs (Casio, 2005). The compensation plan will be tied to the company`s strategic mission which means that a combination of merit system (designed to tie pay increases to each employee`s level of performance) and incentive system (designed to provide additional rewards to top performers) will be used. The broad objective of the design of this compensation strategy (i.e., financial and non-financial compensation) is to integrate salary and benefits into a package that will encourage the achievement of the organization`s objective (Casio, 2005). The new rewards package will consist of two components:

• Direct financial rewards (Salary + incentives)
• Indirect financial rewards (Benefits)
• Non financial rewards
The direct financial compensation is the primary component in a total rewards package (Duchon, 2007). The financial compensation for the newly selected sales team will be a combination of salary plus incentives (commissions and bonuses). Straight salary plans will provide the sales reps with a steady guaranteed income as well as motivate effort on non selling activities. The incentive payments will help direct effort towards strategies, provide additional rewards to top performers and encourage sales success. The goal of the combined financial......
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