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compensationplanmgmt474.pptxManagement 474
Peter Duong, Irina Markova, Stephanie Signor, Ynah Veniegas and Muhammad Zuraidi
Strategic compensation plan
Flash
About us
Analysis
Company Analysis
Product Analysis
Recommendations
Organizational Structure
Staffing Strategy
Compensation Strategy
Benefit Plans
Agenda
DIPSYflash: It’s cute but it’s TOUGH & DURABLE!
TalentCORP Workforce Solutions
About us
Founded three years ago by five college students who believed they had what it took to become a well recognized and respected consulting group
After receiving their bachelor’s degree, they focused primarily on the start-up of Talent Corp Workforce Solutions
The founders of Talent Corp posses different expertises in divisions of business that has contributed to their success
Their high standards of company objectives and strategies have allowed them to become one of the leading competitors in the consulting industry
Talentcorp Workforce Solutions
CEO Profile
Situation analysis
Company Analysis
Company Analysis
Start up company
Start up budget: $175,000
Fixed Expenses: $90,000
As wholesalers they should target small to medium sized businesses
CEO Profile
CEO currently employed
Will quit current job at the end of this week to focus on the start-up of her business
Was earning about $150,000/year
Company and Situation Analysis
Product Description
Variations = Price/Color/Capacity
Seasonal Demand
Mark Up Profit
Product Features
Product information
Rich Homie Gold
Product Description
High quality, durable and trendy USB 3.0 Flash Drive
Variations
8GB = Black $5
16GB = Silver $10
32GB = Gold $20
Mark up profit
+/- $5/unit
Product Analysis The DIPSYflash drive
Seasonal Demands
Quarter 1
Low
Quarter 2
Moderate to High
Quarter 3
High (Season peak)
Quarter 4
Moderate
Silver surfer
Industry standard USB 3.0
Latest protocol
Faster
Backward compatible capability
Performance
Reading speed = 18MB/sec
Writing speed = 16MB/sec
Weight (ounce) =
0.88oz
Product features
Physical Attributes
Capless design
File encryption
Password Protection
Raven Black
Product Capacity Details
How Much Can dipsyFlash Drives Hold?
Organizational Plan - Dani Zuraidi
Staffing Plan - Ynah Veniegas
Compensation Plan - Peter Duong
Benefit Plan - Irina Markova
Recommendations
From Our Experts
Organizational Background
Organizational Chart
Departments duties and responsibilities
Industry Analysis (Rivals/Competitors)
Organizational Structure
Organizational mission
“To provide the world with trendy computer accessories products that focuses on design, durability, quality and affordability.”
Organizational vision
“To become a major market player in the computer gaming accessories through the steady and consistent development of a small but loyal niche market.”
Strategic goals
To create a brand image that is synonymous with durability, quality and design.
To develop a set of product lines related to computer gaming accessories.
To develop a niche market consisting of committed computer gamers.
Tactical Objectives
To sell as many inventory units as possible.
To attain as many relationships with small, medium and large businesses.
Organizational Background
CEO
Oversees all aspects of business functions including accounting, operations, human resources, sales projection, and customer relations.
Sales Reps
Services existing accounts, obtains orders, and establishes new accounts with future clients.
Recommends changes in products, service, and policy by evaluating results and competitive developments.
Handles customer service calls.
Reports directly to the owner regarding sales.
Organizational Structure
Founded in 1985 as a small Californian computer company and became an industry player in Silicon Valley.
Manufactures and distributes memory products that include modules and flash memory cards, USB flash drives, SSDs as well as various peripherals like media players, cooling solutions, storage and add-on cards.
It is represented globally through a number of resellers and distributors online and in stores.
Two main lines of memory modules.
The Signature Line
Standard industry modules
The ExP Line
Targeted to users who demand little to zero lag time due to heavy use.
Gamers and professionals who rely on a lot of DRAM would utilize Extreme Performance
To this day, manufacturing is still handled in California, but Patriot also has a facility for operations in Taiwan.
Competition Analysis
Corsair Memory is a private, California-based company founded in 1994 that specializes in the design and distribution of an extensive range of devices and hardware
They expanded in the 2000s to USB flash drives and other solid-state drives as well as hardware cooling, computer cases, power supply units and most recently, gaming audio.
As for flash drives, Corsair’s storage capacity ranges from 4 GB to 128 GB.
Optimized function and durability are primary features of its flash drives.
Competition Analysis
Models
Flash Voyager/Voyager Mini
Made to endure rugged conditions.
The Flash Survivor
Waterproof, anti-shock and engineered with aircraft-grade aluminum.
The Padlock
Features 256-bit data encryption to protect sensitive file
Hiring recommendations
Sales Force
Types of employees
Full time Employee
Contingent Employee
Staffing Strategy
Sales Force
4 Sales Representatives
Full time employees
40 hours/week
Contingent employees
Hired during season peaks
20 hours/week
Hiring recommendations
Steps to Hire
Interview potential customers
Understand the environment
Write a concise job description
Be specific!
Contact local business schools
Attend College Job Fairs
Entry-level Sales Reps
Use your Network
Run Ads
Full time Employees
Executive Level
CEO
Front Line
Sales Reps
Part time Employees
Sales Reps
Types of employees
Types of compensation
Pay Levels, Pay Mix, Pay Structure
Sales reps goals, quotas and targets
Performance Metrics
Performance Rewards
Internal alignment
Compensation Plans
Pay Level
2 levels
L1 - Executive (Owner)
L2 - Sales Reps
L3 – Contingent Workers
As the company grows in sales volume and employee numbers, there will be a need to expand on the pay levels
Pay Mix
Level 1 (L1)
Salary + Benefits
Level 2 (L2)
Salary + Benefits + Performance based cash rewards (commission)
Level 3 (L3)
Hourly wage + Performance based cash rewards (commission)
Pay Level & Pay Mix
PAY STRUCTURE
Pay Structure Salary Range
Level 1 = Owner $55,000 - $80,000
Level 2 = Full Time $38,000 - $45,000
Level 3 = Temporary $8.50 per hour
Owner will earn salary like a normal employee until the company achieves further growth
Sales representative will earn a salary based on the affordable living wages of the area plus commission.
Sales Representatives
4 Full Time Employees
Base salary 25k + Commission 10% of Profit (1k - 9.9k)
Base salary 25k + Commission 15% of Profit (10k - 19.9k)
Base salary 25k + Commission 18% of Profit ( 20k and up)
An increase 1% of commission every year for top seller (20k+)
Until a 5% is max is reached
Contingent Employees
Hourly Wage $8.50 + Commission 10% of Profit
Pay
Goals, Quota and Targets
Sales Representatives
Sell a total of 10k units every month per salesperson
Sell as much inventory as possible by year’s end
Internal Alignment
Performance rewards are tied to the organizational tactical objective = Sell as many units as possible
Organizational Expectations
Performance Metrics
Criteria used to measure employee’s performances
Bronze = 1k – 9.9k units** => Bonus $1,500
Silver = 10k – 19.9k units** => Bonus $3,000
Gold* = 20k and up** => Bonus $5,000
* Eligible for 1% annual commission increase
** The average of total sell in a year
Evaluating performances
Benefits Strategies
Health Insurance Coverage
Miscellaneous Perks
Benefits Planning
Investments and Savings
401k/ Pension Plan
Contributions from Employees
Social Security
Contributed by both parties
FICA
Individual Retirement Accounts
Defer Tax Payments
Vacation Time-off and Sick Days
Paid Vacations
Increase with employment time
Sick Days
Emergency Situations
Flexible
Benefits strategies
General Health Insurance Plans
HMO - Health Maintenance Organization
Inexpensive
Full Time Sales Representatives
PPO - Preferred Provider Organization
Superior Coverage
Owner
HEALTH INSURANCE
Specific Coverage
Dental
Owner
Vision
Owner
Workers Compensation
Short Term
Minor Accidents
Long Term
Major Accidents
Two Thirds of paycheck times Degree of disability
Questions?
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