Compensation Plan - University of Phoenix - HRM Essay Example for Free

Compensation Plan University of phoenix HRM EssayA good compensation plan must include both aspects, financial and nonfinancial of a rewarding system where financial rewards, or a pay system, assign a pecuniary value to each rail line in the face (a animal foot rate) and an orderly procedure for increasing the base rate (e.g., based on merit, inflation, or some combination of the two) (Cascio, 2005, p. 425). Also, a properly designed repair for Performance (PFP) Program enables companies to reduce their cost of labor while increasing the average subscribe to rest home pay of their playactforce (Jensen, 2009). On the other hand we in addition imparting offer nonfinancial systems that will click indirect aspects such as benefits, professional and personal development. We want to give our sales rung a reason to get out there and sell, sell, sell (Ward).Rewards bridge the gap between organisational objectives and individual put upations and aspirations. To be effec tive, organizational reward systems should tin four things (1) a sufficient level of rewards to live up to basic needs, (2) equity with the external labor market, (3) equity within the organization, and (4) treatment of each member of the organization in terms of his or her individual needs (Cascio, 2005, p. 419).New compensation planPay systems be designed to attract, retain, and move employees (Cascio, 2005, p. 419)The new compensation plan will be based in a surgical process system. If personal line of credit takes off, more pay goes to workers. If it doesnt, the c all tolder-up is not locked into high fixed costs of labor. 417 This system was chosen since meets the company strategy of growth and objectives and such variable-pay systems almost guarantee cost control. 417 (Cascio, 2005, p. 417) and a come up planed recognition system adds to the compensation plan to offset a higher level of discouragement found in a competitive selling environment and in like manner can b e used to express gratitude, admiration, and to inspire to great sales and greater sales initiative (FB Publications, 2005).Our new compensation plan will adopt a combination of base salary plus commission and bonus based on the overall performance. perhaps the most important objective of any pay system is fairness or equity (Cascio, 2005, p. 419). To contain the correctness of our plan, a committee has been createdto evaluate each employee performance, keep our compensation plan current and provide support and training at any time needed.We are also taking in devotion that our payment plan should include a three-tier approach of immediate recognition for a job well done, short-term rewards for performance over a calendar month or quarter, and long-term rewards for being a truehearted employee over the years (Schoeffler, 2005).-Salary a monthly salary will be based on the job description of each position and it has the possibility of be complimented and enhanced depending of th e employee performance.-Commission a percentage of the profit will be used to increase the monthly employee compensation.-Bonus bonuses will be given based on the performance of the sales individual each three months. Percentages will be given according to the goals met, or exceeded, so sales reps will rely on their individual performance.-Team incentives Team incentives provide an opportunity for each squad member to receive a bonus based on the output of the team as a whole (Cascio, 2005, p. 443). Sales personnel will cede participation on this incentive to promote a teamwork environment. These events will happen at the end of the year.-On spot bonus This is going to be granted for especial(a) behavior regarding to teamwork efforts, customer satisfaction or any attitude that can be used as an example to the other workers. We may reward the worker with a one-time bonus of $50, $100, or $500 presently after the noteworthy actions (Cascio, 2005, p. 441).- fillips When it comes t o performance incentives, the possibilities are endless (Cascio, 2005, p. 436), and we plan to use nonfinancial reward system that will include anything an employee values and desires that anemployer is able and willing to offer in exchange for employee contributions (Cascio, 2005, p. 418). Based on the answers compiled from the questionnaire we created, we will develop some entertaining activities such as trips, restaurants, theaters and any other approved filling available in our committee that will be available each three months and also at the end of the year.In our committee we will also make available the following benefits that our employees can elect to participate on-Employee stock ownership plans As the company grows we will offer participation in the stocks of our company and a limited amount of them available to each employee for purchase. It helps to fulfill a philosophical smell in employee ownership 447.ESOPs do promote an increase in employee willingness to parti cipate in company decisions. Companies that take advantage of that willingness can harness employees energy and creativity (Cascio, 2005, p. 447).-Recognition is a non financial reward and helps to enhance a workers sense of self-respect and esteem by others (Cascio, 2005, p. 418). These recognitions will be done in the yearly meetings where all employees are going to be together and have the opportunity to see their colleagues performance is rewarded. Recognition amongst their peers is mute the quintessential motivator, whether theres an incentive program or not (Shearstone)Recent data indicates that people are more attach and committed to organizations that offer family-friendly policies, regardless of the extent to which they benefit personally from the policies (Cascio, 2005, p. 489), therefore our plan also cover other benefits that will be extend to all employees regardless merit or performance.Once you have great employees on board, how do you keep them from jumping ship? One way is by offer a good benefits package. (Entrepreneur Media, Inc, n.d.)Tuition aidAuto damagesFitness and wellness programsCounseling attendChild adoptionChild care Social activitiesElder care Referral awardsCharter flights Family leavesFlexible work arrangementsWe also developed some benefits options that willintegrate salary and benefits into a package that will support the achievement of an organizations goals (Cascio, 2005, p. 470). They will be available to all employees and they can choose among them all.Life insurance stultification insuranceHealthy insuranceOther medical coverageSick leavePension plansUnemployment insurance401KEvidence indicates that the perceived value of benefits rises when employers introduce choice through a flexible benefits package (Cascio, 2005, p. 466). For that reason we expect that this pay system will bring excitement to our workforce since the opportunities are vary.This pay system should also increase motivation of our employees and dee pens commitment with our customer to bring success to both the individual and the company.Following are pointed some reason that we expect to succeed with this new plan.-The final compensation at the end of the month has the opportunity to be largely increased according to the employee performance, but yet, the base salary is high seemly to give the employees some breathing in order to meet the essential financial obligations.-Commissions, bonuses and team incentives.-Variety of employee run and benefits.-Friendly and family environmentBefore our pay system is implemented training will be given to all employees to ensure grounds of it. A website will be available to answer most common questions and our committee will also be available for further explanation and training as needed.ReferencesCascio, W. F. (2005). Managing Human Resources (7th ed.). The McGrawHill Companies.Entrepreneur Media, Inc (n.d.). The fundamental principle of Employee Benefits. Retrieved April 20, 2009, f rom http//www.entrepreneur.com/FB Publications (2005). Sale Incentive Ideas Motivating Your Sales Team. Retrieved April 17, 2009, from http//www.associatedcontent.com/Jensen, M. L. (2009). 9 Key Aspects For Successful Pay For Performance Systems. EzineArticles.com. Retrieved from http//ezinearticles.com/Schoeffler, B. (2005). Employee Incentive Plans Make Them Worthwhile. Insurance Journal. Retrieved from http//www.insurancejournal.com/Shearstone, P. (). Creating Sales Incentive Programs That Work. About.com, 2. Retrieved from http//sbinfocanada.about.com/Ward, S. (). 6 Sure Ways to Increase Sales. About.com. 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