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

Compensation Plan University of Phoenix HRM EssayA good remuneration excogitate must include both aspects, financial and nonfinancial of a rewarding formation where financial rewards, or a earnings system, assign a monetary nurse to from each one job in the organization (a base rate) and an orderly procedure for increasing the base rate (e.g., based on merit, inflation, or roughly confederacy of the two) (Cascio, 2005, p. 425). Also, a properly designed Pay for Performance (PFP) Program enables companies to reduce their cost of labor while increasing the average take home conduct of their custody (Jensen, 2009). On the other hand we overly volition offer nonfinancial systems that will c over indirect aspects such as benefits, professional and own(prenominal) development. We want to give our gross sales staff a reason to get out there and sell, sell, sell (Ward).Rewards bridge the gap between organizational objectives and man-to-man expectations and aspirations. To be effective, organizational reward systems should provide four things (1) a sufficient level of rewards to fulfill basic needs, (2) equity with the external labor market, (3) equity inwardly 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 are designed to attract, retain, and motivate employees (Cascio, 2005, p. 419)The sassy compensation plan will be based in a performance system. If business takes off, more pay goes to workers. If it doesnt, the company is not locked into high mulish costs of labor. 417 This system was chosen since meets the company strategy of growth and objectives and such variable-pay systems al around guarantee cost control. 417 (Cascio, 2005, p. 417) and a well planed recognition system adds to the compensation plan to offset a higher level of discouragement found in a competitive selling environment and also apprize be used to expres s gratitude, admiration, and to inspire to coarseer sales and greater sales initiative (FB Publications, 2005).Our new compensation plan will adopt a cabal of base salary plus commission and subsidy based on the overall performance. Perhaps the most important objective of any pay system is fairness or equity (Cascio, 2005, p. 419). To ensure the correctness of our plan, a committee has been createdto evaluate each employee performance, keep our compensation plan current and provide digest and training at any time needed.We are also taking in consideration that our payment plan should include a three-tier approach of agile recognition for a job well done, short-term rewards for performance over a month or quarter, and long-term rewards for being a loyal 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 compound depending of the employee performance.-Commissi on 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.- police squad incentives Team incentives provide an opportunity for each team member to receive a bonus based on the output of the team as a unit of measurement (Cascio, 2005, p. 443). deals personnel will have 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 exceptional behavior regarding to teamwork efforts, customer satisfaction or any attitude that can be used as an practice session to the other workers. We may reward the worker with a one-time bonus of $50, $100, or $500 shortly after the noteworthy actions (Cascio, 2005, p. 441).-Incentives When it comes to 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 contri scarceions (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 selection visible(prenominal) 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 choose to embark 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 belief in employee ownership 447.ESOPs do promote an increase in employee willingne ss to participate in company decisions. Companies that take payoff 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 still the quintessential motivator, whether theres an incentive program or not (Shearstone)Recent data indicates that people are more attached 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 jum ping ship? One way is by offering a good benefits package. (Entrepreneur Media, Inc, n.d.)Tuition aidAuto amendsFitness and wellness programsCounseling ServiceChild 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 encourage 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 insuranceDisability 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 deepens 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 enough to give the employees some breathing in order to meet the essential financial obligations.-Commissions, bonuses and team incentives.-Variety of employee services and benefits.-Friendly and family environmentBefore our pay system is implemented training will be given to all employees to ensure understanding 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 Basics 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 confident(predicate) Ways to Increase Sales. About.com. 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