Compensation Plan

In: Business and Management

Submitted By chebarilo
Words 1054
Pages 5
Compensation Plan

The purpose of this document is to present a proposal for a compensation plan for the newly formed sales team detailing the plan components, incentive packages, benefits, and the reasons the plan will work.
Strategic benefit planning helps the company to balance the cost with the value and results obtained. It supports the mission and the employees who are the internal customers of such plan (Rappaport & Barocas, 1993).
1. Business Strategy Alignment
InterClean’s new business strategy is about growing and expanding by developing and selling full-service solution packages to existing and new customers in the large institutional and industrial cleaning and sanitation industry.

Linking compensation programs to business strategy is about:
• Aligning performance objectives to the aggressive growth and transformation strategy.
• Measuring the progress and rewarding the achievement of such aggressive goals with aggressive compensation plans that will motivate employees to strive for its achievements.
• Compensating for the long-term strategic objectives to ensure the change of the company culture.
As previously mentioned, it is key to clearly and frequently communicate the strategy, the objectives, and provide feedback from the measurement results.

Key measurements for top compensation:
1- Business growth and increased market share
2- Creation of new customer accounts with new significant business
3- Maintaining and growing existing major customer accounts
4- Solutions as the most significant source of revenue

Expanding and growing a business requires long-term commitments for which proper benefits should incentive those commitments.

Supporting the compensation plan
The proposal adheres to the guidelines for effective merit-pay systems (Cascio, 2005):
• Establish high standards of performance o Established high expectations…...

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