HRM/531 Human Capital Management
University of Phoenix
February 01, 2010
Career development plan part- IV Compensation
February 1, 2010
To: Human Resources Manager
From: Chandan Gulati
Re: Compensation Proposal for Sales Team.
The purpose of this proposal is the new compensation plan for our sales team. The new compensation plan should be such that it benefits the company and the employees. “Compensation includes both financial and non financial rewards. Financial rewards include direct payments plus indirect payments in the form of employee benefits. Nonfinancial rewards include everything in work environment that enhances a worker’s sense of self respect and esteem by others, opportunities for training and personal development, effective supervision.”(Cascio, p- 418) .The compensation should be sufficient enough to satisfy basic needs of the employees. Employee equity is very important in terms of internal, external and individual equity. Employee equity is important to enhance optimum performance. We have merged with EnviroTech and their employee profiles shows that every outside sales representative was given a base pay and they were eligible for sales bonus program as well. The sales representatives of InterClean were just paid straight commission. I believe that outside sales representatives of both the companies have different attitudes towards their work. We have a team consisting of employees from both the companies. “Jim martin who is the vice president of sales” (employee profile) deserves the best compensation which is comparable to the industry standards. He is the backbone of the sales team. He is the one who will motivate the team to do their best. Our “sales manager Tom Gonzalez” (employee profile) has been selected from EnviroTech. We have to make sure that his compensation is more than what he used to get in EnviroTech. He is innovative, highly experienced and customer focused. We need to retain such employees to proceed...
References: Cascio, W. F. (2006).Managing Human Resources: Productivity, Quality of Life, profits (7th Ed) New York Mc Graw Hill.
University of Phoenix .Employee Profile. Retrieved from University of Phoenix, HRM/531 Human Capital Management website.
Please join StudyMode to read the full document