Career Development Plan Part VI—Compensation
HRM/531 Human Capital Management
December 20, 2010
University of Phoenix
Career Development IV: Compensation
In the challenging and unpredictable economic market, companies are trying to redefine sales strategies, incentives, and pay compensation. Labor commands a high level of overhead for a company; therefore, pay policies, benefits, and compensations are critically important to be evaluated closely because it impacts the way of life for all employees. Developing a workable compensation plan enables both workers and employers to achieve mutual goals. When employers reach set goals, rewards and incentives set ...view middle of the document...
Continuing education and training will be provided for growth development.
Tuition reimbursement for continuing education
• Company’s benefits:
401K, profit sharing
Two weeks paid time off annually
Disability and life insurance
The success of this plan is dependent upon 100% employee participation. The benefits portion of this plan will provide motivation for employee For this plan to be successful the design of the plan increases motivation with the use of positive feedback and tangible rewards, which will stimulate performance. Employers are implementing creativity with compensation plans to save money while still remaining attractive to current and future employees. Merit~pay incentive plans reward those employees who produce and are the effective within the organization.
Three components of a Total Reward Package
Solid organizational compensation packages encompass the employee’s desires, needs, and values and will match an employer’s capability to rewards such needs. InterClean's total rewards package has three facets to fuel employee motivation for top achievement:
To recruit and retain experienced and professional employees, benefits are the second of the three components to the compensation plan. According to Casico (2005), people are more attracted and committed to organizations that are more family friendly with benefits packages, (ch 12, p 489). By providing the option to choose benefits that fit the needs of the individual employee, InterClean can control costs while satisfying the needs of the employee. InterClean is a family oriented culture, and under the compensation plan, the employee services umbrella provides tuition reimbursement, child care, and fitness and wellness opportunities.
The work/life balance aspect of the plan competes the plan as the third component. This is comprised of:
Offering the total rewards package reflects a companies values and demonstrates to employees the level...