Compensation Career Development Plan

Career Development Plan IV

Mariam Ibrahim
November 15, 2010
Tracey Durden

To: Humane Resources Department
From: Mariam Ibrahim
Date: November 15, 2010
Re: New Compensation Plan

      As we move forward with the merger between InterClean and EnviroTech speaking on behalf of my team, we came out with a new compensation plan that will motivate our employees to improve their performance. I believe that this merger obtain the company with varies advantages. This memo will outline the plan, which includes the details regarding the process.

      The two types of compensation structures are financial and non-financial reward systems. The financial reward system includes direct pay such as salary or indirect pay such as benefits. The non-financial reward system includes physiological rewards such as recognition from the supervisor or team members (Cascio, 2006)

      The employees will have a base salary of minimum wage and the commission earned will be included. Our commission system will give the employees the motivation to improve their sales skills, as the pay will increase each time they will make a sale or a deal. Inside and outside sales teams will cooperate to discover new skills methods as they enhance these skills by experiencing different techniques. For that reason their pay will be merit-pay system while using the non-financial rewarding system for an increase in motivation.

      As inside sales team doesn’t sustain sales on regular basis, they will be compensated by annual raises and other incentives (vacations, computers, a basketball match between two teams, etc.) when the company achieves the sales goal each month. This way all team members will be treated fairly, as a result the employees will believe that the rewards are obtainable.

      As to have an effective incentive system, we thought of using the merit-pay systems. According to Cascio (2006), this plan may not work for many reasons such as the incentive...