Hrm/531 Compensation Business Plan

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Running Head: COMPENSATION PLAN Compensation Business Plan Marita Dickson Jones University of Phoenix Sales Team Compensation Plan InterClean’s sales incentive plan is designed to reward each member of the sales team for achieving and exceeding healthcare product sales and performance expectations, and to reward key team members for driving the growth of the company. It is also designed to promote a spirit of teamwork and partnership among members in the sales team. The sales team members and supervisor will receive a bonus payout in two forms: product sales commissions and customer availability incentive. The product sales commissions are paid on key healthcare industry products and begin with the first product sold.…show more content…
The goal of the reward system is to retain employees, increase employee satisfaction, and to get employees to perform to the best of their ability. The reward package includes several components that should generate peak performance. Some of the components include paid time off, incentive with no cap, employee benefits and recognition. Each month the sales team member with the highest sales will be rewarded with a paid day off. If the entire team achieves the department goals for three consecutive months then the company will sponsor an off-site department lunch. Both rewards are put into place in order to reward the employee for productivity. The chance for the department sponsored lunch is expected to get the team to unify and work together. This reward promotes high productivity and…show more content…
Many jobs do not offer this opportunity so management believes an incentive without caps gives the job a competitive edge that other jobs do not provide. This reward is expected to retain employees and encourage employees to work hard to get as much incentive as they can. The employee benefits partnered with the no-cap incentives will ensure the employee will work hard. However management understands that the real reward, being valued as an employee, is what is going to keep employee loyalty and turnover low. For this reason all of the sales team members will be constantly recognized for their achievements and valued on a daily basis. Conclusion InterClean’s sales incentive plan is designed to reward each member of the sales team for exceeding performance expectations. The pay system is designed to create an atmosphere of equity and flexibility which will make the system a success. The benefits of the compensation plan will benefit both the employee and the employer by giving the employee the ability to have a desired income and at the same time maintain labor costs by paying for productivity. All in all, the compensation plan coupled with the rewards system will promote high productivity, teamwork, and employee retention. References Cascio, W. (2006). Managing Human Resources: Productivity, Quality of Work

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