Compensation Plans

Compensation Plan Name: Institution: Date: A compensation plan is a well designed structure that is used by a company in order to reward its workers who are performing well in their duties in the company. For a compensation plan to be effective it has to be fair, motivating and able to help the company achieve its goals. When a plan involves the ideas of the sales people, then it will be all inclusive and very effective in most cases. This will help the management in setting realistic goals for the sales people to avoid frustrating their efforts with unrealistic targets (Zoltner, Sinha & Lorimer, 2006). In addition, the salespeople have to be comfortable with the plan for them to be motivated. Compensation plan is based on performance and money is mostly the mode of rewarding the best salespeople. Therefore, the salespeople should be paid their rewards on time. In addition, the sales people should be furnished with information about their payment for clarity. It is also good to pay the sales people happily and appreciating their good work and not seeing as if the reward is a liability or a...