HRM/531 humans Capital Management
University of Phoenix
November 10, 2010
In light of hiring a new group of employees it is important that the remuneration structure is in place and is full to both the attach to and the employee. The last thing that we need as a company is a group that is essential to the company as it relates to acquiring customers to have a high turnover rate. The key is the compensation proposal. Below will be the compensation plan for this group:
Salary - 35%
$50,000/year this is a guaranteed minimum amount of compensation that the salesperson will establish in a one year time period.
Commissions 60%
20% of the total cost of products sold
Additional 3% for customers whose e precise year purchases total $100,000 or greater
aid 5% of salary + commissions
Bonus is achieved based on overall company results
I look at that this compensation plan will work because it provides a very good base salary, however, there is a 60% wildness on the commissions piece where the sales rep has the ability to soar. I did not go with a 100% commission plan because it takes time especially with the merger for these reps to build their pipeline of customers.
Having a 100% commission plan would basically set them up for failure. The 5% bonus component is added in as a reward if the company meets its total goals. This will help the group up support each other as everyone has to meet their goals in order for the company to meet the total goal, which means an redundant 5% in their pocket. Additionally, this compensation plan will slide by the team motivated, but at the same time they are taken care of as it relates to their base salary. This plan in any case will create a huge sense of function especially with the bonus component. No one will mobilise they will have it easy, everyone will have to work every bit as hard. This is a good plan to start the team off with and as we discover the...If you want to get a full essay, order it on our website: Orderessay
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