Compensation

To have this type of system four tools to use are: Updated job descriptions, job evaluation, pay surveys, and a pay structure. The main tools to help in designing the pay system is the job descriptions, and job evaluations which helps in identifying characteristics of a job, and the raking jobs (Cascio, 2006). Compensation plan chosen will be based on a system of merit-pay. This pay system has been avoided because it is not used properly or due to failure. The merit pay system will work because it allows team members to feel some kind of ownership of the company. For a successful compensation plan a five-step process will be used. The five steps used are: 1) Performance standards that are a standard of performance that are high, and low expectations that are self fulfilling. Two is a performance appraisal system that is accurate, and focuses on employee behavior and outcome criteria. Step three will be to train the supervisors on how to give feedback on performance appraisals. Step four is to tie rewards to performance by considering semi-annual performance reviews for merit increases, and finally step five to make pay increases meaningful (Cascio, 2006). The merit pay system will work in respect to those who support the pay system because the sales jobs are interrelated and team incentives are appropriate (Cascio, 2006). For this plan to be successful the plan will be properly designed to increase motivation thereby improving performance and using recognition for motivating the sales team. According to Cascio, (2006) there are effective ways to have a successful compensation plan. One the meaning is to make sure to keep rules brief and clear. Keep employees clear on what is expected of them. Last, when he or she has a compensation plan such as the merit-pay system, there must be accomplishments detailed or money is wasted. For the merit pay system, employees must be able to work and deal with inflation, and increasing salaries is a must. Raising salaries requires an effective strategy to maintain competitive hiring rates. Benefits Package InterClean has a new sales team being assembled, the components are made up in three sections of the reward package will need to be effectively communicated to the sales team. It is the employer’s responsibility to let employees know about his or her benefits and keep them updated on any changes to the benefits. Benefits fall into three specific categories: security and health, payments for time off, and employee services. Employees have to understand the benefits to use them properly and to ensure confidence in the information provided to convince the employees of the value of his or her hidden paycheck (Cascio, 2006). Components of a total rewards package to motivate employees should integrate full compensation, total benefits, and work-life balance with training, and personal growth opportunities. Total compensation consists of two parts, base pay and incentives (“Construction Business Owner,” 2007). Incentives are payments received for a measured output of work. Benefits are the second of the three components and is necessary as part of total rewards to obtain key talent and retain that key talent. Another component is work-life balance that the organization offers the employees opportunities for flexible scheduling, childcare, and tuition reimbursement, just to name a few. This component provides flexibility and modest indirect costs to the company. By offering a total rewards package a company shows employees appreciation for improvement. The loyalty and motivation eventually shows an increase in productivity and profit in successfulness of the company (“Construction Business Owner,” 2007). Plan Benefits The compensation benefits to the individual team members is a realization that the company values the individuals employment with the organization, and wants to offer compensation as a means of reward. This company also offers benefit chances for higher education, career development, and recognition. The benefits will be retaining top talent, by offering employees good compensation therefore, the employees lives will be more comfortable creating an employee who can focus on job performance with little or no worries about his or her benefits. Summary In summary a compensation package, is the result for retaining the best employees within the organization. Even with a passion toward a job, there is an outcome that shows dedication and commitment for the company.