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Topic:

Sales Forces' Compensation Plan

Essay Instructions:

For companies that have a mission of selling, a major objective is to motivate the salespeople. While that are many factors that go into motivating these people, one of the primary factors is the compensation plan that describes how they will be rewarded. Research a large organization’s sales force and its compensation plan.



Write a five to seven (5-7) page paper in which you:

1.In order to motivate the sales force to produce the highest number of clients, describe six (6) features of an effective total rewards program.

2.Describe the behaviors of the sales force that are targeted with the compensation plan.

3.Assess how a value proposition is achieved for current and future employees in the plan you have outlined.

4.Based upon the type of plan you have created, indicate how attracted you think future salespeople may be to this plan.

5.Use at least five (5) quality academic resources in this assignment that are not older then 3 years. Note: Wikipedia and other Websites do not quality as academic resources. 



Your assignment must follow these formatting requirements:

•Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.

•Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length. 

Essay Sample Content Preview:

Sales Forces’ Compensation Plan
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Introduction
Companies that do excel owe their success to the sales team. The sales manager therefore faces a big challenge while trying to motivate the sales force. Motivation is a process that is aimed at developing goal –oriented behavior in a person. As such, an organization’s total rewards philosophy symbolizes far more than just the sum of cash it pays to employees or even the tassel benefits that it provides. Motivation serves the purpose of initiating desired behavior within an individual and directs it toward realizing organizational goals. Motivation has three elements namely; goal, need and drive. A need drives an individual towards achieving a particular goal that ends up satisfying the need. The effectiveness of the sales force plays a vital role in the growth and success of an organization. The sales manager therefore needs to highly motivate the sales force as a way of ensuring that the company realizes its goals (Fisher, 2013; Nwude et al, 2013).
For the sales force to be highly motivated, an effective total rewards program should be put in place. An effective total reward program has several features that make it effectual. The elements of total rewards include; programs, practices dimensions and elements that collectively define a company’s strategy to attract, motivate and retain employees. These elements include; compensation, work life, benefits, performance and regulation, development and career opportunities as well as influence and personal growth. The elements are a depiction of a tool kit from which a company opts to offer and align a value for both the company and the employee (Tomczyk et al, 2013). However, the elements are not mutually exclusive and a total reward strategy requires a smart combination of all elements into tailored packages designed to realize optimal engagement. Initially, rewards were perceived as generally referring to the pay an employee receives for the labor offered. However, this perception has changed and total reward system is regarded as the overall value proposition offered by employers to the employees. Compensation includes base pay as well as short-term and long-term incentives. Benefits given to the employees include health benefits, retirement and work/life benefits which adds the portion of the rewards package. For a total reward strategy to be effective, it must results in satisfied, engaged as well as productive employees who make the organization realize a desired business performance and also achieve the organizational goals (Byrd & Megginson, 2013).
The integration of compensation plan in a work force is geared towards achieving specific goals. The overall purpose of a sales compensation plan is to motivate the sales team as well as sales management so as to ensure that the organization coordinates the sales force’s activities with the organization’s own profit-maximizing goals (Tomczyk et al, 2013). Total reward system helps in resourcing employees through competitive pay. An organization is able to attract and retain excellent talents through competitive pay. It can also affect the employment development through competence related as well as skill-based pay. This in turn encourages the advancement of competence and skills among the employees and performance management processes that promote continuous development through various means such as personal development planning. Reward also affects career development as well as planning through establishing a framework for tangential career ladder in the structure of a job family. In addition, reward affects employee relations thorough helping to develop a reward culture that is based on transparency, mutual trust, involvement as well as fair deal. Total reward system affects the effectiveness of an organization through providing the means to motivate greater performance, to align organizational and individual objectives and also to gain commitment (Oechsli, 2014).
Generally, total reward is considered as an advanced model for human resources management which macroscopically boosts the advancement of social economic environment and microscopically accelerates enterprise development. Total reward system reflects to a great depth in what ways organizations can attract, motivate and also retain talents; the ways in which employees’ performances which align with the organization’s goals should appear; and in which ways excellent employees should be praised and motivated.
While developing compensation plan, there are several factors to be considered. The sales manager decides on the elements of compensation to be offered on top of standard commission. Such elements would include; quota bonus schemes, special performance incentives for field force (spiffs) and monitoring. It is also important to determine the actual reward levels as well as setting the appropriate balance between and among the various levels. A decis...
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