HRM/531 Interclean Compensation Paper
InterClean Compensation
Richard W Tibbetts Jr.
HRM 531
July 7, 2010
Felicia Bridgewater, PhD.
InterClean Compensation In light of the company’s merger and new strategic direction, a revamped compensation plan for the sales team is needed. Compensation plans should be tied to a company’s strategic mission and “should take their direction from that mission” (Cascio, 2005). This memo will discuss the details of the new compensation plan and illustrate how it will fulfill this goal. It will also specifically address the anticipated benefits of the plan for individual employees and company at large. The memo will describe how the proposed salaries, incentives, and benefits will facilitate the long-term goals of InterClean.
Description …show more content…
Aspects from the compensation systems of both companies will be used in the new plan. InterClean previously emphasized straight commissions over base salaries. Even employees who had long been paid a base salary plus commission, such as Outside Sales Representative Donna Wilson, were being converted to a straight commission compensation plan (InterClean Employee Profiles, 2010). In many ways, this emphasis on commissions facilitated the culture of the old InterClean sales team, whose members were renowned for being aggressive deal closers. However, the new InterClean strategic direction emphasizes long-term customer relationships over mere product sales (InterClean Strategic Plan, 2010). A base salary plus an incentive pay plan for all sales employees best fits this new …show more content…
Although each sales representative shares the same title, some have much more experience and expertise and should thus be afforded the opportunity to be started on a slightly higher base pay grade. Yearly evaluations and reviews of this plan will ensure that the rates are fair for each member of the sales team. A gradient salary scale will be used, ranging from $15,000 to $30,000. At the discretion of the management, potential positions such as “senior sales representative” can be established if necessary. This new category would operate on an expanded salary gradient. Although these figures are also externally equitable, if pay rates from competitors increase then InterClean salaries should rival these to remain competitive. The motivation behind this dynamic approach lies in the fact that it will ensure that employees are motivated to achieve further but will also ensure that they can meet their minimal financial responsibilities. The base salary gradient encompasses a wide range of dollar amounts, so there is room for managerial flexibility in deciding starting salaries and issuing
Richard W Tibbetts Jr.
HRM 531
July 7, 2010
Felicia Bridgewater, PhD.
InterClean Compensation In light of the company’s merger and new strategic direction, a revamped compensation plan for the sales team is needed. Compensation plans should be tied to a company’s strategic mission and “should take their direction from that mission” (Cascio, 2005). This memo will discuss the details of the new compensation plan and illustrate how it will fulfill this goal. It will also specifically address the anticipated benefits of the plan for individual employees and company at large. The memo will describe how the proposed salaries, incentives, and benefits will facilitate the long-term goals of InterClean.
Description …show more content…
Aspects from the compensation systems of both companies will be used in the new plan. InterClean previously emphasized straight commissions over base salaries. Even employees who had long been paid a base salary plus commission, such as Outside Sales Representative Donna Wilson, were being converted to a straight commission compensation plan (InterClean Employee Profiles, 2010). In many ways, this emphasis on commissions facilitated the culture of the old InterClean sales team, whose members were renowned for being aggressive deal closers. However, the new InterClean strategic direction emphasizes long-term customer relationships over mere product sales (InterClean Strategic Plan, 2010). A base salary plus an incentive pay plan for all sales employees best fits this new …show more content…
Although each sales representative shares the same title, some have much more experience and expertise and should thus be afforded the opportunity to be started on a slightly higher base pay grade. Yearly evaluations and reviews of this plan will ensure that the rates are fair for each member of the sales team. A gradient salary scale will be used, ranging from $15,000 to $30,000. At the discretion of the management, potential positions such as “senior sales representative” can be established if necessary. This new category would operate on an expanded salary gradient. Although these figures are also externally equitable, if pay rates from competitors increase then InterClean salaries should rival these to remain competitive. The motivation behind this dynamic approach lies in the fact that it will ensure that employees are motivated to achieve further but will also ensure that they can meet their minimal financial responsibilities. The base salary gradient encompasses a wide range of dollar amounts, so there is room for managerial flexibility in deciding starting salaries and issuing