Hrm-531 Compensation Plan

988 Words4 Pages
Introduction All organizations have a compensation plan in which to satisfy the employee to generate productivity. Compensation plans need to be tied to an organization’s strategic mission and should take their direction from that mission (2009). They must support the general business strategy, for example, innovation, cost leadership (2009). The new compensation plan for my team with the embarkation of a new strategic plan of InterClean focus more on attracting and retaining productive and potential employees. Compensation will be determined considering the organization’s budget and most importantly the required performance and productivity to achieve organizational goals. Taking an approach like this will align the interests of managers and employees (2009). I believe the development of a compensation plan which will work together with the benefits plan is a significant aspect to attract, recruit and retain the most effective and productive employees. In addition, achieving the organizational objective to provide flexible and competitive compensation and benefits program is one of the focal point in order to satisfy and attract potential and existing employees of InterClean. New Compensation Plan and Why Pay System Will Work The new compensation plan is designed to be fair, flexible, competitive, and performance based. Key elements of the program include: (1) salary, (2) retirement (pension plan/401k), (3) flexible benefits, and (4) performance compensation. The organization (InterClean) will regularly review the plan to ensure that it remains competitive in which to encourage employee productivity of exceptional performance. To strategically define and establish the new compensation plan, the organization must perform the following: a) identify compensation as a key motivation method that can be used by management or high level positioned

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