InterClean Career

InterClean Career Development Part IV:  Compensation Plan

InterClean has undergone many changes over the last few months.  The organization has successfully acquired EnviroTech and merged the two organizations together to focus on a new diverse industry and a new company vision.  The success of the new organization is strongly linked to its sales team and how well the team is able to earn and upkeep relationships with both current and future customers.  The competition in the new industry is stiff and requires a lot of work from the sales team.  The InterClean management team has concluded that the best way to engage the sales team is to ensure the compensation plan is top notch.  Employers that want to succeed in this increasingly competitive environment must have a well-designed compensation plan that motivates employees, controls compensation costs, and ensures equity.  (Expert Insight: Compensation Plan, 2010)  InterClean recognizes that an effective compensation plan will take into consideration applicable state and federal regulations, individual performance, and organizational performance and goal.

InterClean, as an organization will conduct job analysis, job evaluations, and job pricing to determine the proper compensation plan for the new sales team.  The job analysis analyzes and describes each position; the job evaluation takes the information gathered in the analysis and creates labor grades according to perceived job value.  The job-pricing step then assigns each grade a pay range that establishes a minimum, mid-point, and maximum for each pay grade.  There will also be a bonus scale created that looks at the dollar amount the sales team maintains on a periodic basis that will payout at these times of review.  The management team has also conducted research and concluded that the sales compensation plan that will attract, retain and motivate quality salespeople usually include some type of “income base”.  This is a minimum amount of compensation that the salesperson earns within a specified period.  An income base is provided in several ways, but the organization is proposing a non-recoverable draw.  This is a fixed amount of money that is paid within a specified period.  If the actual commissions earned during a period exceed the base amount, the salesperson is paid the difference.  However, if the actual commissions earned during the period do not equal or exceed the base amount, the salesperson will NOT owe the company the difference.  The slate is “wiped clean” at the beginning of the next period.  This will provide an advantage for the team especially during the training periods.

The compensation system will InterClean has chosen will work because it allows each member of the team to achieve equally.  The compensation plan will allow the employees to aim for specific goals and achieve higher performance.  Employee morale and job satisfaction are affected by comprehensive compensation package.  Sometime there is a balance that must be reached between the monetary value we are willing to pay and the sentiments of worth felt be the employee.  In an attempt to save money, we may opt to freeze salaries or salary levels at the expense of satisfaction and morale.  This compensation plan will be used as a reward once job performance has been evaluated.  Examples of such plans include bonuses, commissions, stock, and profit sharing, gain sharing.

The total rewards package offered by the organization will consist of several components that will encourage the employees to consistently aim for peak performance.  The main components of the total reward system for InterClean will be total compensation, benefits, and work-life balance.  The total compensation piece will be motivational for employees because it will offer pay that considers all aspects of employee performance.  The aspects considered will be the current industry market, employee knowledge, employee performance, employee stability, as well as the profitability of InterClean as a whole.  The benefits InterClean will offer their employees are medical and dental benefits, paid holidays, short term, long term benefits with buy-up options, workers compensation, and 401-K savings plans with company match.  Over 80 percent of companies include employee benefits as a part of their total rewards package to attract, retain, and motivate key talent.  (Duchon, 2010)

A comprehensive compensation plan will lead InterClean to attract and retain high-performing employees.  The broad objective of the design of compensation programs (i.e., direct as well as indirect compensation) is to integrate salary and benefits into a package that will encourage the achievement of an organization’s goals. (Cascio, 2006)  Under its reconstructed organization plan, InterClean has crossed over to offer services in a new competitive industry.  The success of the organization greatly depends on the achievements of its sales force.  People tend to be motivated when the fruits of their labor are recognized by the organization.




Cascio, W. (2006). Managing Human Resources: Production, Quality of Work Life, Profits (7th ed.).


Duchon, M. (2010). Total Reward Plans that Attract, Retain and Motivate. Retrieved December 13, 2010, from Compensation:


Expert Insight: Compensation Plan. (2010). Retrieved December 13, 2010, from BLR Compliance Simplified:


Tracy, B. (2010). Empowerment and the Key to Building a High-Performance Team. Retrieved December 5, 2010, from Empower Others:





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