Compensation Plan

Compensation plan for InterClean
Josh Marsden
HRM/531
July 18, 2010
Yamile Bandera

Compensation plan for InterClean
With a team, training, mentoring, performance management, and careermanagement, plan in place, the next step is to develop a compensation plan that is effective. The keys to an effective compensation plan is one that is both attractive and fair. In addition, with thecurrent economy, it’s important that we build a compensation plan that rewards employees for their production and performance. Incentives and potential salary increases will need to be mainstays of thiscompensation plan to be attractive towards the new team and employees in the future. In addition, the compensation plan must also be part of the corporate strategy in driving specific company goals.The compensation plan that will be incorporated will be a performance-based pay system that includes a salary, commission, and incentives. Based on the market, most sales professionals in theindustrial cleaning field or similar fields, make between $28,000 and $35,000 per year on salaries. With that being stated, InterClean’s compensation plan with have a starting annual salary of $32,000.Every six months, the new sales professionals on this plan will be reviewed for their performance over the previous six months and could receive up to a 10% salary increase. In addition, there will beperformance-based incentives incorporated into the compensation plan that tie into 2 things: hitting monthly goals and sales of each individual service. For every month that the sales associate hitshis or her goal, they will earn a bonus of 3% of his or her annual salary. The services will have a commission attached to each of them as well. The commission bonus will range depending on thelevel of service offering sold to new or current clients.
This pay system will be beneficial for these new sales associates and the company for many reasons. Starting with the sales associates, the...