Essay on Career Development Plan Part Vi—Compensation

901 Words Dec 24th, 2010 4 Pages
Career Development Plan Part VI—Compensation

HRM/531 Human Capital Management
December 20, 2010
University of Phoenix

1

Career Development IV: Compensation

Compensation Plan

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 forth within the compensation plan are based
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Continuing education and training will be provided for growth development.

Tuition reimbursement for continuing education

• Company’s benefits:

Medical insurance

401K, profit sharing

Two weeks paid time off annually

Disability and life insurance

Pension plan.

Pay System

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:

Internal equity

Benefits

Work-life balance

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

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