CAPSTONE AND SALES PROJECT

Table of Contents
Grade based salary structure..................................................................................................................2

Market based salary system...................................................................................................................2

Reference list..............................................................................................................................................7

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Question 1

Grade based salary structure

The grade-based salary system the employees get the salary according to the post of the
employees and job grade level the employee holds. This is a post-based system where the
employees get the salary according to the post level structure. A minimum and maximum salary
are announced in this system. It ensuring the malintent between the reward strategy HR,
reward strategy, and business.

Market based salary system

is based on the market value according to the demand and supply range present in the market
on the amount of salary. A range of salary is being decided in this structure and the salary is
determined on the market rate (vandergast et.al 2020). Here any policy maker would definitely
choose the market-based system as the structure of this system is more realistic and compact.
The range of the salary’s rate decided by the market demand and supply forces. So, this type of
system would give a good impact on the policies which are adopted.

Salary + Commission

Base Salary $ 50,000.00

Projected Sales $ 100,000,000.00

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 Commission $ 20,000.00

Commission Percent 20%

Commission Caps At (in sales) $500,000

Commission Earned $96,000

Total Compensation $146,000

Table 1: Sales compensation plan

(Sources: self- created)
Question 2
Potential challenges Sales compensation plan required to avoid
1.Recycling the same plan
Recycling the same plans year after year repeatedly can cost a company a lot, as this is not the
right process to overcome the challenges over the years.
2. Driving wrong sales
Driving the wrong sales can cost a firm a lot and that will cause the company to complete the
challenges which are faced by the companies over the years through bad decisions.
3. Complexity in sales compensation

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 Complexity of sales compensation plan plays a major role in the process to overcome the
challenge and the process to carry on the process to eliminate the things which comes in the
way of the sales function (Guthrie, et al. 2020).
4. Capping sales compensation
Capping sales compensation is an important matter which needs to be regulated. This is an
important challenge in the way of any sales operation and the mitigation of this process is very
much needed for the betterment of the operation.
5. Demotivated employees
Lees motivated employees to play a bad role in the case of the challenge as these types of
employees demotivate the other employees to give a good performance ahead and for these
types of moral problems, the others also face the lack of motivation. This is the reason why
these should not be entertained and given priority in the operation (Jaramillo et.al,2018)
6. Employees setting unrealistic goals
The employees who are setting very high and unrealistic targets for the lower operating team
then it would cause a lot of problems in the way of the operation. As the sales target is
unrealistic so the employees will be demotivated.
Question 3
Staff retention in sales
● Adaptation of comprehensive policy
● Good intensive
● Communication
● Sales motivation process
A. For the retention of the sales employees the company must adopt a comprehensive policy in
the retention priority of the staff managing dept.
B. Creation of the supporting working environment would provide a good incentive to retain
most of the staff as the staff would get a good environment to work.
C. Proper training and development is a must policy for the retention of staff in the company
and this makes a pivotal impact on the retention level (Richards, et.al,2020).

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D. Communication is the best process to keep the employees and the mindsets of the
employees unchanged. That is why the communication gap must not be encouraged.
E. Offering the benefits and perks plays a good role in the retention of the employees. Extra
perks work as an extra incentive for any of the employees to be dedicated to the company.
F. Creation of good manager training and internal recognition boosts the employee’s mentality
to keep loyal with the company and that can be a good policy for the retention of the
employees (Patwardhan, et.al,2018).
G. Sales motivation training is an important process to retain the employees connected with the
company and make the sales team encouraged as this team is crucial for any company.
retention in any company’s sales dept shows the surviving capacity of the company.
H. The employees who are setting very high and unrealistic targets for the lower operating
team then it would cause a lot of problems in the way of the operation. As the sales target is
unrealistic so the employees will be demotivated.
Question 4
Tools and technique to achieve sales goals
Measurement of the sales activities
The measurements of sales activities and others are very important for the improvement of the
sales level on a daily basis. For the raise of the sales a lot of things like man power and new
recruitments are mostly needed. These all come under the consideration of sales activities.
Monitor the pipeline
The checking of the pipeline is needed for the rise in sales, sales officials must check pipelines
various times a day. These kinds of activities keep the motivation and focus on the work more
(Loureiro et.al,2018).
Improvement of the close rate
For the development of the sales the improvement of the close rates is very much. At 50% of
the close rate must be achieved, at least 50 % of the close rate should be improved.
Reduction of the large and sales process
The reduction in the procedure is helpful for the upgradation of the sales process. As the
reduction in the procedure of sales boosts the numbers of sales in the field.

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Increase in the average sales
Increase in the average sales will definitely help to boost up the sales and
It will definitely give a proper raise in the rate of the sales which is sufficient for the market
survival (Razmak,et.al 2018)
Connection with leaders
Sales analysts and leaders play a vital role in the rise of sales, that is the reason why the
connection between the sales leaders and workers are needed in the works.
To keep the employee less-stressed some of the process must be followed
● Communication line to achieve goal of business
● Maintaining the stress level of employees down
● Keep the things and working process easy
1. Keeping the communication line open for the talks in every section can reduce the stress of
the employees.
2. Advocating people is a must follow process which must be followed to keep the stress level
of the employees down.
3. Staying organized and mixing things up can take the stress level down and keep the sales
employees stress free (Román et.al, 2018).

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Reference list

Fu, F.Q., Richards, K.A. and Jones, E., 2020. The motivation hub: Effects of goal setting and self-
efficacy on effort and new product sales. Journal of Personal Selling & Sales Management,
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5f77955a92851c14bca9dfc6/The-Motivation-Hub-Effects-of-Goal-Setting-and-Self-Efficacy-on-
Effort-and-New-Product-Sales.pdf

Loureiro, A.L., Miguéis, V.L. and da Silva, L.F., 2018. Exploring the use of deep neural networks
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McDonald, P., Guthrie, D., Bradley, L. and Shakespeare‐Finch, J., 2020. Investigating work‐family
policy aims and employee experiences. Employee Relations.
https://eprints.qut.edu.au/archive/00010688/01/10688.pdf

Patwardhan, A.R., 2019. Physicians-pharmaceutical sales representatives interactions and

conflict of interest: challenges and solutions. INQUIRY: the Journal of Health Care Organization,
Provision, and Financing, 53, p.0046958016667597.
https://journals.sagepub.com/doi/pdf/10.1177/0046958016667597

Razmak, J., Pitzel, J.W., Belanger, C. and Farhan, W., 2022. Brushing up on time-honored sales
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Román, S., Rodríguez, R. and Jaramillo, J.F., 2018. Are mobile devices a blessing or a curse?
Effects of mobile technology use on salesperson role stress and job satisfaction. Journal of
Business & Industrial Marketing, 33(5), pp.651-664.

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van der Gaast, K., van Leeuwen, E. and Wertheim-Heck, S., 2020. City-region food systems and
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