- In your business, describe salary, commission, and combination pay plans in terms of their advantages and disadvantages to your sales team; to your company.
These are the methods that are used for primary compensating sales people. The salary is the fixed amount that is provided to the sales representatives or the employees. Commission is the fixed or variable ratio or the percentage on the sales of the units or products. It also includes achieving the sales targets for the organization. Lastly it is combination of the basic salary and the incentive play in the form of the bonuses, commissions or the both. For the increase in the sales of the glass water repellent, there is need to offer the commission for the sales representatives. This is the extra push for them in order to make them effective and efficient. This is also a good method to increase the sales of the product. The commission and the sales target can achieve by face-to-face and door-to-door marketing of the product. In addition, the feedback from the customers is also important for the development of the product and the organization.
The bonuses and the commissions are favorable in terms of the increase in sales of the glass water repellent; however, commission with salary is disadvantage for the organization. The extra amount is deducted from the accounts in terms of the compensation to the sales persons. There is the solution to overcome these problems. The salary is based according to the sales of the units of the products. On the other hand, the commission will award on achieving the sales target set by the organization for the purpose to increase the sales. The bonuses will provide on the best performance and it will annually. The advantage is that the employees will work with commitment and determination in order to increase the sales and generates revenue for the organization.
- For your business or product, what type of evaluation perspective for your employees are more appropriate and why: outcome based or behavior based. How will this improve your salesperson’s performance?
The subjective measures are important for the employees to evaluate their performance. These are important to directly observe the behavior of the employees and the sales agents during the work. It is also important for the development of the organization and the business. It is important because the aim of the business is to run long term in the market. The sales of the product or the glass water repellent are not one time. The sales person helps to develop the strong and loyal relationships with customers and the organization. Therefore, it is mandatory to observe the behavior and attitude of the employees during the performance. For the success of the organization it is also mandatory for the organization to keep the monitoring and evaluation of the employees. For this proposer, organization can also take the feedback from the customers.
On the other hand, the objective measurement is also necessary to improve the performance of the salespersons. In order to achieving the sales target the sales person can adopt any means. However, there is no misleading about the quality, standard and working of the product. The organization can use the task-oriented approach to increase sales. Objective measure also includes the output measures of the sales person. The appraisal system helps to improve the sales performance of the sale representative. The desirable behavior of the sales person is more much controllable. However, the number of the active accounts is more effective in order to measure the sales performance and behavior of the sales person with employer and the customer. In rare cases, the organization can go for the ratio measures, any kind of the deficiency can be manage and control by focusing on the behavior and attitude of the customers and coaching to them by the managers.