Your company currently has a bonus plan for its sales managers. If annual sales for a manager's unit exceed $1 million, the manager receives a $10,000 bonus. In a typical year, about 5 of the 10 managers in the firm meet the target and receive the bonus. However, the number receiving the bonus varies from year to year due to the state of the economy, which in turn has an effect on sales. The company is considering replacing the bonus plan with a plan that rewards the top-five selling managers each year with a $10,000 bonus. Discuss the potential benefits and costs of the new plan relative to the old plan.© BrainMass Inc. brainmass.com October 24, 2018, 5:57 pm ad1c9bdddf
In simple terms the benefits are: improved work by managers in the intercompany environment. The costs are the amount of money on the bonuses themselves but that could easily be offset by the sales brought in by the managers.
This is a two tiered analysis. First, the managers will not have more of an incentive to work harder even in bad economic times since before with the million dollar ...
Ideas for paper - Compensation package, Incentive Plan, Benefits Plan
James Richards has an electrial engineering degree from a United States' accredited university. Upon graduation he was offered, and he accepted, an entry-level engineering position at a firm in San Antonio, Texas. He has been gainfully employed with this firm for the last five years. Recently he interviewed with your firm which is located in Chicago, Illinois. You, working for the human resources department, want to employ James. Working in conjuction with your supervisor you are drafting three items; 1) a compensation package, 2) an incentive plan, and 3) a benefits plan in order to successfully employ James Richards with your organization.
Using the internet, locate all necessary information for constructing these three packages. This will include designing plans that are specific to James and this situation, including the pay rate that will be offered, and the specific benefit and incentive plan this offer will include.
Along with these packages you will include a one page cover letter that outlines what you propose to offer. The cover letter should be addressed to your supervisor and should explain and justify the compensation package, incentive plan, and benefits plan. Your detailed plans will then follow that cover page.