Sales Force Compensation Essay

832 Words Dec 3rd, 2012 4 Pages
Sales Force Compensation Adam Goode Dr. Ed Sherbert HRM533: Total Rewards November 4, 2012

Sales Force Compensation In order for a company to acquire the highest number of clients, that company must be able to fully motivate their employees. One of the primary factors to motivate the sales force is compensation. Employees that are in the sales force do want to get commissions for the sales that are made, but they do also want to get a base salary as well. A commission only structure can greatly motivate employees to make sales, yet if they only receive pay for making a sale, an employee might not feel that they need to come to work if they can’t
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That is where a company can do a good job with the total rewards program that they do have set in place. The company can show employees that great work will be rewarded, yet they need to make it known upfront what that will be. Employees don’t need to be thinking that one person is getting better rewards because of a good connection that they have, but that employee should understand what rewards will be produced by what sort of results. The total rewards program should also help employees understand that the lack of results would end up having adverse consequences. This would help show employees that they should stay motivated to produce great results. The total rewards program should be able to be understood by all employees. Employees need to be able to see what type of compensation structure that they can expect for producing more clients for the company. Employees should be able to see if they will get a base salary as well as commission, and what kind of commission they can receive. Having that information visible can make the company seem very attractive for future employees. If someone can’t know what they will get for their job, they would not really be motivated for that job. Bonuses are also a great thing to help motivate employees in the sales force. A higher bonus might be delivered to an employee for the higher clients that employee is able to pull in. Employees can end up seeing that, which can then help motivate them to