Compensation plan HRM Summury 1 Pay strategy 2

Compensation plan HRM

Summury • • • 1. Pay strategy 2. Pay structure 3. Salary external survey 4. External wage curve 5. Benefits package & incentive package 6. Fine tune pay package

1. Pay strategy • We choose an secure strategy. Many reason explain that , we don’t want to take risks with our fix cost ( pay ) and futhermore we are a quite young start up. We gonna start with medium wage and work on a main objective : MOTIVATION to obtain a bonus wages. • Next we explain it in this rapport.

2. Pay structure • Salesmen • • Step 1 Step 2 Step 3 Step 4 step 5 Step 6 Step 1 : minimum wage, commission 3% by sale Step 2 : need 180000 euros per year of profit, good relationship Salary 1300/month, commission 4% by sale • Step 3 : need 200000 per year of profit, perfect workteam, good analyze of the market, leadership, make proposition for business Salary : 1400/month, commission 6%, company car • Step 4 : need 210000 euros year of profit, be in charge of 30 customer Salary : 1500/month, commission 8% • Step 5 : need 210000 euros per year of profit, take initiative, be confident with customer, perfect knowledge of the market Salary : 1600/month, commission 9% of the profit yearly • Step 6 : need 3 billion per year of profit, train new salesman and get training at the management Salary : 1600/month, commission 10% of the profit yearly. The basic pay for the salemans will be the minimum legal for beginning, 17600 euros per year. This salary will be increasing faster every years after review of the result and for keeping in the company the better salemans. Furthemore, a percentage of 10% maximum per sales will have a role of motivation. Of course, all the cost for the car, food and will be take in charge like a private health care. A professional phone and a computer will be given and in the futur, if result, the salesmans will have a company car. Finally, team bonus can get at the end of the years for the good result, probably a percentage of the global sales for implement motivation and team working.

• For sales manager Step 1 • • Step 1 : salary 1500, in waiting of result • Step 2 : need 1 billion per year of profit, Step 2 Step 3 Step 4 step 5 Step 6 Salary 1800/month, bonus 8% of profit yearly • Step 3 : need 1. 5 billion per year of profit, good analyze of the market, leadership Salary : 2000/month, commission 8% of the profit yearly • Step 4 : need 2 billion per year of profit, Salary : 2100/month, commission 8% of the profit yearly • Step 5 : need 2. 5 billion per year of profit, can propose new product and new idea, developed the company in an other area Salary : 2200/month, commission 9% of the profit yearly • Step 6 : need 3 billion per year of profit, maintain and develop the company on the market Salary : 2300/month, commission 9% of the profit yearly It is a young company with just 4 salesman so that why the new manager will percieve a small salary of 1500 euros per month comparate to some other manager(50/60000 euros per year) But if the company gain market and growth the salary will automatically improve. The salesmanager have some advantage like an office, a company car, a phone and a private healt care. The sales manager dont have comission in the sales but a bonus everyyear depending of the performance and bonus based an profit

3. Salary external survey • For salesman Years of experience Sectors 0 to 3 years 3 to 5 years 5 to 8 years More than 8 years Bank & Insurance Industrial 32 000 – 38 000 € 38 000 – 48 000 € 48 000 – 60 000 € + 60 000 € 18 000 – 25 000 € 26 000 – 35 000 € 35 000 – 42 000 € 42 000 – 45 000 € Medical 30 000 – 40 000 € 40 000 – 50 000 € 50 000 – 60 000 € 60 000 – 70 000 € Services 24 000 – 36 000 € 28 000 – 40 000 € 32 000 – 42 000 € 38 000 – 46 000 € Building & Construction 25 000 – 30 000 € 30 000 – 40 000 € 40 000 – 55 000 € 55 000 – 60 000 €

• For sales manager Years of experience Sectors 3 to 5 years 5 to 8 years More than 8 years Bank & Insurance 42 000 – 50 000 € 50 000 – 60 000 € + 60 000 € Industrial 55 000 – 80 000 € 70 000 – 90 000 € 90 000 – 130 000 € Medical NS 60 000 – 70 000 € 70 000 – 80 000 € Services 45 000 – 55 000 € 55 000 – 70 000€ 65 000 – 85 000 € Building & Construction 47 000 – 68 000 € 70 000 – 90 000 € 90 000 – 130 000 €

4. External wage curve • For salesmen We chose the company C&G that is a concierge business so in the sector of the service in this graph. About the salesman, we decided to choose a person with an experience between 0 and 3 years. We think it’s a good thing because the person will have little experience as salesman so they could discover this sector and learn about the manager and also no too much to no pay him as much because it’s a young company. So, the study of this chart and especially the service sector, we can say that the wages of our salesman will be approximately about 30 000 €.

• For sales manager Salesman Manager Wages at the 3 rd and the 5 th year experience 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 B&I Industrial Services 3 rd Year 5 th Year B&C Medical We chose the company C&G that is a concierge business so in the sector of the service in this graph. About the salesman manager or the team, we decided to choose a person with an experience between 3 and 5 years. We think it’s a good thing because the person will have a good experience as manager in sales and also no too much to no pay him as much because it’s a young company. So, the study of this chart and especially the service sector, we can say that the wages of our sales manager will be approximately about 50 000 €.

5. Benefits package & incentive package • The remuneration of an employee is not always limited to his salary. Different incentives may be paid by the employer to motivated their employees to give the best of themselves. The message is clear to sellers, you find more customers you receive more advantages. In C&G conciergerie you can take off your variable. They are two different types of incentives, the benefits and the incentive packages. The both are different if we are a salesman or a sales manager.

Benefits package Salesmen Sales manager Incentive package Free Gaz Trip/travel present Dental care Healthy care Team bonus Sports package Phone package Tickets restaurants Holiday vouchers The incentive awards The yearly bonus Cell phone Compan car the week-end Performance awards The attendance bonuses Free Gaz Trip/travel present Dental care Healthy care Phone package Tickets restaurants Holiday vouchers The incentive awards The yearly bonus Cell phone Commission s Extra salary

6. Fine tune pay package • • For the sales team: • The commission • • • Percentage of revenue or margin realized by the seller • Bonus awarded if the targets are met • • Gain-sharing programs� Pay the sales volume you expect from your business with a variable share of at least 10% of salary A premium allocated as soon as they meet the objectives set at the beginning of the year incentives and special bonus plans For the sales manager : commission Cash bonuses for innovative or productive employees