Career Development Plan Part 4 Essay Example | Topics and Well Written Essays - 1000 words

Career Development Plan Part 4 - Essay Example This paper analyses the new compensation plan at InterClean Corporation. A well structure compensation plan reduces employee turnover and increases corporate profits since it provides adequate incentive for an employee to increase their productivity. The old InterClean had a sales staff that got awarded a sales commission for the sales an employee obtained. This system force the employee to think about individual results, since the salesperson pay would increment based on his/hers achievements. Since the company offered simple product this was a viable strategy. This no longer applies to the new business model the company is implementing. Teamwork is now more important than ever and long term satisfaction of the customer is a strategic focus that must be pursed in order to achieve customer retention. In the solution based business follow up contracts with the clients generated a lot of income for the enterprise. There are two types of rewards systems that cam be used by a company. These two types of rewards are intrinsic rewards and extrinsic rewards. Intrinsic rewards are positively valued work outcomes that the individual receives as a result of work outcomes, while extrinsic rewards are positively valued work outcomes that are given to an individual or group by some other person or source in the setting (Schermerhorn & Hunt & Osborn, 2003). The total compensation plan the company will offer has to satisfy the needs of both the employee and the firm. The firm does not want to establish a plan that does not encourage professional development and teamwork. The new compensation plan the company will offer to its salespeople will be profit sharing plan with a group merit pay element as well as other individual incentives. In a profit sharing plan a company contributes a portion of its pre-tax profits to a pool that will be distributed among the eligible employees (Hr-guide, 2008). The profit sharing at InterClean will be calculated