Professional Documents
Culture Documents
Ms MOD-4
Ms MOD-4
DEFINE MOTIVATION
Motivation is an internal feeling and an energetic force within salespeople that drives them to behave in a
certain way. It produces goal-directed action harnesses human energy towards the goals of the sales
organization.
DEFINE COMPENSATION
It refers to monetary benefits offered and provided to employees in return of the services they provide to
the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave
travel allowance, medical reimbursements, special allowances, bonus, PF/Gratuity, etc. They are given at
a regular interval at a definite time.
Compensation Management is designing and implementing total compensation package with a
systematic approach to providing value to employees in exchange for work performance,
Compensation is a systematic approach to providing monetary value to employees in exchange for work
performed.
Retain the best talent: An employee would leave an organization if compensation levels fall. So, it is
essential to have a proper compensation panning to retain the best talents.
Ensure equity: Pay should always be equal the worth of the job of an employee. Employees doing similar
jobs should be paid equally and likewise, more qualified employees should be paid better.
Reward new ideas and behaviors: Pay should reward an employee’s loyalty, commitment towards work,
his experience, the amount of risk the job holds and the initiatives taken. When companies fail to reward
such contributions, employees will fall apart.
Cost control: Hiring cost should never be too high. The compensation planning should ensure that workers
are neither overpaid nor underpaid
Compliance: The compensation planning and management should invariably satisfy governmental
compliance of minimum wages, bonus, allowances, benefits etc. Synergetic product tour.
Entice the employees: Compensation should be high enough to attract the best talent in an organization. If
an organization wants the service of a competent employee, then the salaries must be high enough to
motivate them to apply and join you
Recognition – Most people appreciate being recognized for their accomplishments. Certainly, many sales
people are competitive and will enjoy the spotlight when they have done well. The recognition can be a big
shout out in front of the whole team or a simple pat on the back fro a job well done, but in any case, this is
one of the easiest and most powerful ways to reward your reps.
Fringe benefits- in addition to salary additional benefits like medical benefits, retirement benefits, vacation
benefits, sick leave, maternity leave, life insurance, & other form of motivational tools.
Perks- this are the special category of compensation available to the employees with some special status or
expertise in the company. They are based on the performance & have a higher motivational power than other
categories of the perks.
Status perk: office location, job title, parking space.
Financial perk: use of co vehicles, club membership, expenses of their support staff
Personal growth: paying for additional education & training programme.
Gifts and Prizes – Sales people love a good competition! Prizes such as trips, trinkets, gift certificates, gas
cards and dinner vouchers can create great incentives for reps to over-achieve.
Flex Hours – I have never been big on working hours, placing more emphasis on achieving goals. So for
the reps that meet or exceed targets, I have always given them the opportunity to work flex hours or take
some time off. This always proved to be a big motivator in spite of the fact that overachievers typically
aren’t interested in a whole lot of time off.
Training – If your organization is large enough you can offer the opportunity to be mentored by a senior
member of the team when someone meets their targets. This offers a unique chance for the motivated to
advance their career.
Status – Similar to recognition, formal achievement awards work very well for rewarding sales reps.
President’s Club is the typical program that companies set up to recognize sales achievement, however other
awards such as profit, customer wins, and customer service awards can also be useful in motivating positive
behavior and providing appreciated rewards to the sales reps.
Sales contests
Simplicity - A compensation plan should be simple to understand and follow so that Sales Executives
can calculate their own earnings.
Adjustments - A sales compensation plan should adjust to changes in performance, as and when that
happens.
Economical - Lastly, the compensation plan should be economical to administer and should support
the overall objectives of an organisation.