Sales Reps Case Summary

Decent Essays
What would I do if my employees were expecting bonuses and my employer was not in a sound financial position to pay out these promised bonuses? How this is handled could have serious effects on the sales reps as well as the company. Clearly management would not want to put the company at risk, and more than likely, employees would prefer the company remain in business. That being said, I would approach this issue by looking for a compromise. I would recommend the president of the company arrange a meeting with the sales reps who were entitled to bonuses, and inform them of the situation. These are hard working adults who are dedicated to growing the company, as evidenced by their performance. They are fully capable of understanding the seriousness of the situation. I would encourage an open discussion to determine if a compromise if possible.…show more content…
The consequences of not following through could be fatal. Loss of sales reps, loss of customers, and loss of employees that were not promised bonuses are all very real possibilities. Trust is essential to every relationship and people do not want to work for someone they do not trust, customers to not want to buy from vendors they do not trust and suppliers to not want to sell to customers they do not trust. The latter two mentioned could take years to repair the damage. Even if sales reps decide not to leave, the question remains, would they perform at their highest capacity? What would be the incentive if the company is only going to pull the rug out from under them at a future time? Simply stated, reputation and trust are invaluable. The flip side of this issue is really the same thing. Management has a fiduciary responsibility to keep the company operational and profitable. While the ultimate decision lies in the hands of upper management, they would be wise to listen before making their final
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