Essay Sample on Compensation Sales Professionals

Introduction

Every business needs to reward its workers effectively. Good reward improves the attitude of employees in their work. The employees expect good financial and non-financial rewards to increase their work performance and also to become motivated. Since sales professionals also require proper compensation for both the basic pay, allowances and commission (Rouzies, 2011). Payment of sales professionals should be based on both sales volume and not on the level of customer satisfaction because it is the responsibility of the production department to produce a product that satisfies the needs of the customer. The essay is to address the solution of the problem of compensation which resulted from rolling out a new product of cyber tech. This is a very stable company which produces and sell computer hardware and software that focuses on handheld solutions for service and maintenance. The branch of the company responsible for maintenance is based in the USA while others are in foreign countries. CybrTech depends on in house sales representatives composed of seven sales professionals working in the same field and other three that support customers through the phone and website. The company launched a new product M2 which has many more features than the original product M1. The sale of product M2 is very low as compared to M1 which has been in the market for over eight years.

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For outside sales professionals, it is essential to give them bonuses on top of the commission and base pay they receive at the end of the month or year. To increase the sales volume of product M2, the executive team should add bonuses to sales professionals who have superior performance. It should come in the form of cash incentives or ensure that all the expenses of sales staffs who have exceeded their sales targets are paid for. This will make the sales professionals have an ideal compensation plan which includes base pay, commission, and several bonuses. Under this condition, the sales professionals will work extra hard to meet the sales target and also to ensure that they supersede the annual sales targets which the company require. With this kind of compensation structure, the sales professionals will provide that customers feel and agree that the additional features improve the quality and value of product M2 as compared to product M1. Also, the same kind of pay structure where sales professionals get basic pay, commission and bonuses will force them to get sufficient time and necessary resources to talk the customer through all the additional features added to product M2. This increases the number of customers willing to buy product M2 because sales professionals take every step to ensure that the customer buys it at the stated price. This can be achieved when the Executive team will offer a basic pay of $28000, the commission of 5% for meeting sales target of $800000 at the end of every year and a bonus to ensure that they supersede a sales target of $800000.

Inside sales professionals also require total reward to get motivation and also to have a positive attitude towards their work. To help customers and to sell additional features not only over the phone but also to use other means to reach out for customers, it is important also to allow the sales professionals even to get a commission and bonuses on top of their basic pay. It is essential to receive a basic salary of $48,000 per year, the commission of 2% on a sales target of $800000 and also a bonus for sales exceeding the sales target. Basic pay alone will only be used as a tool for hiring a sales agent but cannot motivate them to meet the sales target set by the company. Paying both commission and bonuses ensure that the sales agent does not work to achieve personal interest only but also the benefit of the company. The inside sales agent also needs to get a commission to motivate them so that they can be ready and willing to help customers and sell additional features using other means of communication not only over the phone. This is because they would like to get a commission for any sales they have made over and above the sales target. It will act as a significant incentive for the inside sale professionals to work harder to exceed the sales target. The sales agent also needs to receive an additional commission for selling more products to new customers as compared to existing customers (Rouzies, 2011). However hard it is difficult to explain features of product M2 as compared to product M1, sales agents will have to teach them to customers to meet the sales target to allow them to get a commission. They should also be entitled to receive bonuses for any sales exceeding the sales target of $800000. With the addition of a gift, the sales agents or professionals will take every action to sell product M2 above the expected sales target. As a result, the sales professionals will ensure they have superior performance over what the company expects from them.

Receiving a full compensation structure composing of base salary, commission, and bonuses can allow inside sales professionals to spend most of their time trying to help those who have purchased the unit. This is because they will receive a sales commission and bonus when the customer bought the product. The outside sales team will also not give up from giving customers enough training because they are rewarded well based on the sales operation; they give to the client (Rouzies, 2011). The provision of enough training helps customers understand how to use the product, and this improves the quality of customer service. The outside sales team can only to these when they have an excellent compensation structure which motivates them and also give them a positive attitude towards work. The outside employees should also receive bonuses for every sale above the required target. For the outside sales team to provide customers enough training, it is essential to add additional sales commission for superior work performance. The sales agents will work very hard to ensure they receive a maximum reward from the company.

Conclusion

Based on the above explanation, sales agents need to have a good compensation structure composing of basic pay, commission on meeting company sales target and bonuses for exceeding sales target. The sales professionals who receive total reward are more motivated than those who are paid partially. Such employees also have a positive attitude towards their work, and this gives them a desire to offer additional work after the sales usually called after sale services like training customers after they have purchased the unit. Therefore, the company needs to reward its workers handsomely as a way of providing motivation.

References

Rouzies, D. (2011). Sales force compensation. Sales Management, 413-432. doi:10.1007/978-1-137-28574-4_17