comp_head.gif (9667 bytes)

This is an area which the salesperson Andy had expressed dissatisfaction with. The compensation and motivation practices of the company, together with my recommendations, are depicted in the table below.

Issues

Current Practice

My View

 

 

Compensation Package
  • Fixed Monthly Salary
  • Transport Claims
  • Mobile Phone / Pager Claims
  • Medical / Dental Benefits
  • Annual Bonus

Salesperson’s Comments:

  • Dissatisfied with compensation package
  • Felt that it should be increased.
  • Should note the negative consequences of inadequate compensation and motivation plans
  • Consider needs of different salesperson when planning compensation
  • Should also consider the motivational and organisation implications of the compensation plans such as cost, frequency and timing of compensation payments

 

Motivation Schemes

Sales Manager’s Comments:

  • Annual bonus is form of incentive
  • Company could introduce salary increment or sales commission

Salesperson’s Comments:

  • Sales commission could be introduced
  • Should customise motivation scheme according to needs of salespeople
  • Active Encouragement could be employed because of its effectiveness and ease of implementation

How do they train?Back to Main!Conclusion is?