Strategic compensation plan

1. Strategic compensation plan Management 474 Peter Duong, Irina Markova, Stephanie Signor, Ynah Veniegas and Muhammad Zuraidi Flash

2. Agenda • About us • Analysis • Company Analysis • Product Analysis • Recommendations • Organizational Structure • Staffing Strategy • Compensation Strategy • Benefit Plans DIPSYflash: It’s cute but it’s TOUGH & DURABLE!

3. About us TalentCORP Workforce Solutions

4. Talentcorp Workforce Solutions • 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

5. Company Analysis CEO Profile Situation analysis

6. Company and Situation 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

7. Product information Product Description Variations = Price/Color/Capacity Seasonal Demand Mark Up Profit Product Features Rich Homie Gold

8. Product Analysis The DIPSYflashdrive • Seasonal Demands Quarter 1 Low Quarter 2 Moderate to High Quarter 3 High (Season peak) Quarter 4 Moderate 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 Silver surfer

9. Product features • Physical Attributes • Capless design • File encryption • Password Protection • Industry standard USB 3.0 • Latest protocol • Faster • Backward compatible capability • Performance • Reading speed = 18MB/sec • Writing speed = 16MB/sec • Weight (ounce) = 0.88oz Raven Black

10. How Much Can dipsyFlash Drives Hold? Product Capacity Details

11. Recommendations From Our Experts Organizational Plan - Dani Zuraidi Staffing Plan - Ynah Veniegas Compensation Plan - Peter Duong Benefit Plan - Irina Markova

12. OrganizationalStructure Organizational Background Organizational Chart Departments duties and responsibilities Industry Analysis (Rivals/Competitors)

13. Organizational Background • 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.

14. Organizational Structure • 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.

15. Competition Analysis 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.

16. 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 • 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.

17. Staffing Strategy Hiring recommendations Sales Force Types of employees Full time Employee Contingent Employee

18. Hiring recommendations • Sales Force • 4Sales Representatives • Full time employees • 40 hours/week • Contingentemployees • Hired during season peaks • 20 hours/week • 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

19. Types of employees • Full time Employees • Executive Level • CEO • Front Line • Sales Reps • Part time Employees • Sales Reps

20. Compensation Plans Types of compensation Pay Levels, Pay Mix, Pay Structure Sales reps goals, quotas and targets Performance Metrics Performance Rewards Internal alignment

21. Pay Level & Pay Mix • 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)

22. PAY STRUCTURE Pay StructureSalary 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.

23. Pay 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 ContingentEmployees Hourly Wage $8.50 + Commission 10% of Profit  

24. Organizational Expectations • 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

25. Evaluating performances • 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

26. Benefits Planning Benefits Strategies Health Insurance Coverage Miscellaneous Perks

27. Benefits strategies • 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

28. 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 • General Health Insurance Plans • HMO - Health Maintenance Organization • Inexpensive • Full Time Sales Representatives • PPO - Preferred Provider Organization • Superior Coverage • Owner

29. - end - Questions?