Marketing Plan For First Transit Business Development Team Operates Under A Sales Incentive Policy

1335 Words Dec 8th, 2015 6 Pages
First Transit is an operating division of FirstGroup plc, a publicly traded firm on the London Stock Exchange. Revenue growth is an important financial measure as it has a direct impact on shareholder value. Therefore, the Board of Directors adopted a five-year plan that establishes annual revenue growth goals for First Transit of around 8%. For a firm with annual revenues of $1.4B, this requires a dedicated business development team that is motivated to retain current customers and win new business. The First Transit business development team operates under a Sales Incentive Policy that provides bonus payments upon execution of new business and renewal contracts. This paper will assess the incentive policy and offer support for it as …show more content…
Winning new contracts and retaining current work through a competitive procurement process is critical to the financial success of the company. The policy also adds intrinsic value to the employee as he or she earns a feeling of achievement and recognition when receiving the bonus check. Stakeholders and situational factors are taken into consideration and influence the policy. The policy is designed to motivate the team to win new business contracts that generate revenue growth. The FirstGroup CEO and Board have established this as a key goal and business objective that must be achieved. Situational factors are also considered. Common industry practice is to pay commissions to business development personnel. The incentive policy places a direct link between performance (contract wins) and compensation (commissions) that is not only found in transportation management firms, but is consistent with sales positions across many disciplines. The policy is also in line with the other FirstGroup operating divisions that have similar policies in place to help achieve high revenue growth goals. Establishing policies that are consistent with the goals and objectives of the company and individual team members is an important Human Resources concept. The HR Map offers a strong analysis tool to determine a policy’s effectiveness. The initial step is to evaluate the outcomes of the policy in relation

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