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Human Resource Application: Selling It

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HR Application 1: Selling It

Imagine that you are the compensation specialist for a large manufacturing organization in the U.S. Your organization makes and sells a product (YOU get to choose what the product is) in the global marketplace. Develop a compensation package for the position of a Salesperson in your organization.

Be sure to address the following:
What is the product that your organization makes and sells? Be specific.
What are the major issues that should be considered as part of your organization's compensation strategy? For example, how will your product, the nature of sales jobs, and global competition affect your decisions?
What dimensions and elements of compensation will be most important to this job in your organization? Why?
Construct a short email that you could send to a newly-hired employee providing a brief overview of initial compensation and benefits. For example, would a Salesperson at your organization be paid salary only, salary plus commission incentives, hourly only? What kinds of pay differentials could they expect for shift work? Will any or all employees receive benefits? Do your best to be realistic in what you would expect to offer and explain the decisions you made

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Solution Summary

The solution discusses human resource application of selling a product in the global marketplace.

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Compensation package for insurance sales person:

Product that the organization sells:

The product that the organization sells is health insurance. This is insurance that covers medical care costs, income loss due to injury or illness, dental insurance and long term and short term disability.

Issues to consider as part of the company's compensation strategy:

Major issues that need to be considered as part of the company's compensation strategy are what the company's business sales strategy is and what it is trying to achieve through sales; the various performance measurements and benchmarks that help in giving guidance to the sales team in terms of their focus, the compensation that sales people will be paid, performance based pay an dhow this will be measured and the competitive compensation levels in the market place. Other factors that can be taken into account are the kind of product that the company is selling, the sales cycle, skills needed by the sales person in making sales and how profitable each sale is. The capability of the compensation strategy to motivate the sales employees is also important (Fogleman, 2004).

There since ...

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