Developing Sales Incentives
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I need help with the following question: Suppose you have been asked to lead a task force to develop a sales incentive plan at your firm. The task force is to develop a list of strategies and issues to be evaluated by upper management. Using information from www.mercerhr.com and various other Websites, identify and develop preliminary material for the task force.
My answer needs to be around 200 words. Any help will be appreciated. Thank you.
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Solution Summary
The solution discusses the development of sales incentive plans and draws on several resources in addition to the one mentioned by the student.
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Thank you for posting today. It is my goal to provide ideas, definitions, research help, and instructions on how you, the student, should approach the assignment.
Overall, I found that website to be fairly useless for this topic. Mercer HR is a consulting firm, so to get any real information out of them, we would have to hire them. Although, I did find the following report which you may consider to be somewhat helpful: http://www.mercer.com/summary.htm?siteLanguage=100&idContent=1348760
That link, goes into a basic discussion of short-term incentive plans. While it does not give an ideas for incentive plans, it does highlight one very important thing: That the incentive goals are attainable.
Some thoughts out how to design an incentive plan:
"Cash is king.
One of the best ways to keep employees from walking out the door is to pay a higher salary. Paying employees more in salary, however, won't necessarily align them with the company's priorities.
To do that, you may want to adopt a compensation program that gives employees incentives to achieve the company's goals. The challenge is designing a plan that will accomplish the desired result.
What's your vision?
To design an appropriate incentive compensation plan, it is first necessary to understand the company's vision. What are the company's long-term and short-term goals? Does the company seek short-term cash flow or long-term capital appreciation?
Does it wish to cater to high-end customers who are willing to pay more for a superior product, or does it seek large volume profits in a low-margin market? The company's vision should be the cornerstone of any incentive ...
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