Career Development Plan Iv-Compensation

Over the past few weeks, we have made a lot of progress in the merger of InterClean and EnviroTech. We have constructed a career development plan, which delineates our processes of the job analysis and selection methods, the development of a training and mentoring program, and the performance and career management plan for the new Sales Department. We endeavor to devise the appropriate compensation plan that will attract, retain, and motivate our employees. We know if the plan is properly implemented this will help InterClean soar like a rocket ship because it will assist in pulling the employees together with our company. It will help us drive our employees in the area in which we want them to go and give an extra thrust that every company needs in this competitive environment.
Equity of Pay System
We have established a plan derived from assessments of what must be paid to attract and retain the best people, what we can afford to pay, and what will be required for InterClean to accomplish our strategic goals. We will be objective when applying the new pay system. “Perhaps the most important objective of any pay system is fairness, or equity” (Foulkes & Livernash, 1989). Equity can be assessed on at least three dimensions:
Internal equity. In terms of the relative worth of individual jobs to an organization, are pay rates fair?
External equity. Are the wages paid by an organization “fair” in terms of competitive market rates outside the organization?
Individual equity. Is each individual’s pay “fair” relative to that of other individuals doing the same or similar jobs? (Foulkes & Livernash, 1989).
“Researchers have proposed several bases for determining equitable payment for work” (Foulkes & Livernash, 1989). They have three points in common:
Each assumes that employers perceive a fair return for what they contribute to their jobs.
All include the concept of social comparison, whereby employees determine what their equitable return should...