Sales force motivation and compensation

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Sales force motivation and compensation

  1. 1. Module 4
  2. 2. Factors infuencing the design of acompensation plan Financial Stability of the firm Size of the market Nature of the Product
  3. 3. Types of Compensation Plan1. Financial Compensation Straight Salary Plan Straight Commission Plan Bonus and Incentive Salary plus Incentive Plan( Combination Plan) Drawing account and Commission Plan Allied Methods
  4. 4. 2. Non-financial Compensation Promotions Recognition Programmes Fringe Benefits Expense Accounts Perks Sales Contests
  5. 5. Steps in designing a compensationplan1. Determine Sales Force and Compensation Objectives2. Determine Major Compensation issues3. Implement Long term and Short term Compensation Plans4. Relate Rewards to Performance5. Measurement of Performance6. Appraise the Compensation Plan
  6. 6. Sales Force Motivation Importance of a motivated sales force: WHY? Constant rejections by customers, lower self- esteem, customer complaints about product and service. Frequent travelling, problems with work-life balance
  7. 7. Principles What principles should a sales manager follow while designing a motivational programme for salespeople? Most incentive plans designed in organizations are based on the application of the below mentioned principles – Principle of Securityo A motivation programme should aim at providing a sense of security to the salesperson – he should worry less about the future and contribute to sales without looking at issues about his basic survival and satisfaction of his physiological needs
  8. 8.  Principle of achievemento Salesperson should know in advance the achievement he will have from the motivational programme, so that he will put more effort into achieving the desired goal Principle of approvalo Salespeople expect that the good work by them be praised, approved, and rewarded by the salesmanager
  9. 9.  Principle of loyaltyo If there is a high sense of social respect for each other, the salesperson tends to develop loyalty towards the organization and respect towards the seniors and managers. Principle of advancemento Every salesperson looks at progress and growth inside the organization
  10. 10.  Principle of leadershipo Programs should be designed to nurture salespeople for future leadership roles. Principle of human behaviouro Sales manager should treat salespeople as human beings with emotions, aspirations, and values.

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