Hrm 531 - Career Development Plan IV

CAREER DEVELOPMENT PLAN PART V

Kimberley Prentiss

HRM 531

NEW COMPENSATION PLAN

"Compensation is a method used by managers to control and motivate salespeople" (Cooke, 1999), along with the real objective which is to" optimize the company's return on invested capital" (Ferber, 1975). This will be achieved by creating a "total compensation strategy" (Cascio, 2006, p. 470) plan where we will integrate performance/incentive based compensation and benefits into an attractive package in our quest to attract and retain skilled and talented employees.

This plan will be designed based on these points:

* Key performance indicators identified

* Designed so that it is easy to understand, communicate, administer and measurable

* Determine parameters in quantifiable terms

* Security and Health Benefits designed to include (health, dental, vision, life, long/short term disability, pension, 401k matching, vacation/personal/sick time opportunities, flex scheduling, life event assistance e.g. child/elderly care, tuition assistance and other employee services. (employees' will also have the ability to choose which benefits meets their needs from a few different health providers or the ability to opt out of all benefits and received a monetary kickback).

A scorecard for each employee will be kept by each individual and those results will be verified by each manager. The reporting of all results will be shared publically and we will celebrate our successes and identify areas of improvement monthly.

WHY THIS STRATEGY WILL WORK

This strategy will work because it gives all employees some control and options.

As it relates to compensation, once key performance indicators have been established and parameters set the employee has the ability to control their earning potential; if an employee chooses to exceed expectations there are incentives for every level within the company upper management, middle management and employees. This strategy puts the control of performance/incentive reward in his or her path of ability and will.

Security and health benefits are designed to help relieve the pressure that life events can have on an employee. This strategy has been created to aid in managing the whole person not just their work life. This will give employees options so they can tailor fit their benefits for their own individual and family needs. We want to be a company that provides "family friendly policies" (Cascio, 2006) because when employees have great options to deal with the challenges that life brings they are more attached and committed; flexible policies create a culture of happy employees and happy employees come to work and produce great results.

DESCRIBE THREE COMPONENTS OF A TOTAL REWARDS PACKAGE THAT WOULD MOTIVATE EMPLOYEES TO REACH PEAK PERFORMANCE

Three