Developing a Compensation Plan for a Sales and Marketing Manager

Determining the compensation package to be provided to the new employee

Based on the job description you created in Assignment 1, develop a compensation plan for the position. A compensation plan is the program of pay and rewards, which combines direct and indirect compensation. Create a compensation plan with a mix of direct and indirect compensation. You must perform research to establish what you will include and provide a rationale for the elements you elected to include in your plan.

Research similar positions in your selected industry and market to establish an appropriate base salary for a fully qualified Sales and Marketing Manager. This should be the salary you intend to pay the employee and not a range. You should provide at least 3 sources for your research.

Use the textbook for ideas related to additional direct and indirect compensation. You should also do research to understand what other organizations are providing in the same industry and market. Provide at lease 3 sources for your research (additional). Do not include benefits which are mandated by the government. In this case you will need to establish which province you are hiring in, and understand what government mandated benefits exist in that province. This assignment should reflect what you are offering above and beyond those mandated.

Costing. While conducting you research you should look for the cost of providing each element of the compensation package. For example, if you are providing additional health and dental benefits, what is the annual cost? The total cost of all the elements of the compensation plan (excluding the base salary) should not exceed 25% of the base salary. For example, if you are offering 70,000 in base salary, your budget for the additional element of your compensation plan is: 70,000 x 0.25 =17,500.

Present your Compensation plan in the chart format provided in the example below. It should not exceed 1.5 pages in length single spaced.