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Compensating The Sales Force

This document discusses compensation plans for sales forces. It outlines that sales compensation plans aim to balance personnel needs, provide incentives and motivation, and be fair, flexible, and easy to administer. The document describes straight salary plans, straight commission plans, and combination salary plans. It emphasizes that an effective compensation plan's objectives should be clearly determined and that payment methods may include salary, commission, bonuses, stock options, benefits, and prizes. Properly designing and implementing a compensation plan is critical for sales manager success as it directly impacts sales force productivity and morale.

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Achinthyo Das
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Download as PPT, PDF, TXT or read online on Scribd
455 views

Compensating The Sales Force

This document discusses compensation plans for sales forces. It outlines that sales compensation plans aim to balance personnel needs, provide incentives and motivation, and be fair, flexible, and easy to administer. The document describes straight salary plans, straight commission plans, and combination salary plans. It emphasizes that an effective compensation plan's objectives should be clearly determined and that payment methods may include salary, commission, bonuses, stock options, benefits, and prizes. Properly designing and implementing a compensation plan is critical for sales manager success as it directly impacts sales force productivity and morale.

Uploaded by

Achinthyo Das
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Compensating The Sales Force

Prof. T. K. Chatterjee

Compensating Sales Force


Sales job is unique in the sense that a sales person has an Option of varying his income based on his performance !!

Eureka Forbes famous recruitment advertisement stating You write your own pay cheque is a clear example depicting The phenomenon.

Objectives Of Compensation Plans


Balancing The Needs Of Personnel : : Secure income and security Desire For Personal Recognition and Status Reinforcement For Doing Good Work Managing Effects Of Time : Should take care of cyclicity

Characteristics Of Compensation Plans


Fairness To All Flexibility Provide Incentive And Motivation Direct Efforts Toward Companys overall objectives Ease Of Administration and Comprehensible

Types Of Compensation Plans


Straight Salary

Straight Commission Plans

Combination Salary Plans

Designing Compensation Plans


Determining Specific Objectives : D Increasing Sales Volume e Increasing Sales Of Certain Products Achieving A Particular Target Selling A Balanced Product Mix Increasing Customer Base Establishing Long Term Customer Relationship Monitoring Credits And Collections Increasing Customer Satisfaction Establish Desired Levels Of Earnings Methods Of Payment : Salary/Commission/Bonus/ESOP/Fringe Benefits/Special Prizes etc.

CONCLUSION
Designing and implementing a proper compensation plan for The sales force is a critical job component for a Sales Manager Since it directly impacts the productivity and morale of the sales Force. Remember : Your performance as a Sales Manager is directly Dependent on the cumulative performance of your sales team. Hence a well thought-out compensation plan is an imperative !!

Prof. T. K. Chatterjee

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