Within this proposal, I will explain the new compensation plan tort the sales department team, explain why believe that this pay system will work, describe three components of a total rewards package that would motivate employees to reach peak performance and describe the new sales department compensation plan’s benefits to the individual as well as to the company. Compensation Plan The compensation plan for Intercalate new sales department will include effluence and nonofficial rewards. The salary for the team will be ranked from the Outside sales Representative to the Vice-President to sales.
The sales department has three outside sales representatives who are salaried plus commission pay They will have a starting salary of $37,000 plus commission. The Outside Sales Training Representative will have a base salary to $40,000. The Sales Manager will have a base salary of $48,000 and the Vice-President of sales will have a base salary of $58,000, There will be a team bonus pay system offered quarterly for employees of the sales department. This bonus system will range from an additional 3% to Increase In pay. All salary Is subject to change depending on Job performance and appraisals.
Every sales department employee will be offered healthcare benefits, subsidies for onsite child care, paid time off for family medical leave, life insurance. Worker’s compensation, disability insurance, social security, unemployment Insurance, vacation, holidays, grievance and sabbatical leaves. Paid vacations will be 40 hours after one year of employment offered yearly. Hours will not roll over. Paid holidays include: New Years Day, Martin Luther King Day, Easter, Memorial Day, President Day, Independence Day, Labor Day, Thanksgiving, Christmas Eve and Christmas.
Another employee-service benefit tottered would e tillable work arrangements. The sales department set up a non-financial reward system offering recognition of top sales teams every month. The tea m name will listed on the bulletin for the month and will be given gift certificates for dining. There will be training development opportunities able for employees who need further training. Effective Pay System I believe that this pay system will work because it covers most of the benefits that an employee would need in order to be dedicated to his or her Job.
With this benefits package, employees are being offered competitive incentives that will moment with other companies in the same market. Intercalate offers a salary package that is also competitive with other companies. Intercalate has a compensation package that is reasonable in relation to the practices of leading competitors (Socio, 2006). If the employees are satisfied, they will focus on the profitability of the company’s products and services and motivate desired sales behaviors such as new business generation, maximum account penetration and team selling (Rig, 2007).
Three Components of Total Rewards Package Three components of the total rewards package that would motivate employees to each peak performance would be the team bonus pay system offered quarterly for teams with top sales; flex time arrangement offered for employees both parents working in the home, for family illness, for personal illness, and emergencies, and onsite child care arrangements for employees with dependent children.
Benefits of plan for an individual and the company This compensation plan will benefit the individual because Intercalate sales department is offering family-friendly policies and benefits that are suitable to the employee and his or her family. This would be a benefit for the company because it ill keep the turnover rate to a minimum, employees are happy to come to a caring, nurturing environment, and the company makes a profit because the sales department is dedicated to making sales and making bonuses on top of their salary.