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Pay Structure for Retail Sales Team/Retail Support Team

What is the most effective compensation structure for a retail sales team? What about a retail support team? How do you assess the costs and benefits of nonfinancial rewards?

Solution Preview

The most effective compensation structure for a retail sales team is a base amount, coupled with a commission program. The sales team should be compensated with a mix to ensure that the sales person is sufficiently covered with a minimum pay amount (the base pay) yet motivated to take advantage of the commission program. To put sales people on a one hundred percent commission program can result in an unpleasant experience for the customer because the sales people may become too aggressive. Conversely, too low of a commission, and the sales people may be indifferent to customers and company programs. The commission program should be targeted ...

Solution Summary

This solution discusses the most effective compensation structure for a retail sales team, and for a retail support team. It also discusses how to assess the costs and benefits of nonfinancial rewards. Links are included to support the solution.

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