Explore BrainMass

Key Indicators for Changing a Sales Compensation Plan

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

The case study question was:

Assume you take over a company and look to change the sales compensation plan. What are some key indicators you will need to review and implement for success of your new plan?

Key indicators, such as sales volume and type of sales (recurring business or new accounts) are key indicators to monitor before changing a compensation plan. Other indicators are market conditions, such as competition in the area.

© BrainMass Inc. brainmass.com October 17, 2018, 11:23 am ad1c9bdddf

Solution Preview

Thorough review and analysis will need to be conducted on the composition of sales for each of the company's associates whose primary job functions are in this arena. If the majority of sales occur with established customers, on a fairly routine basis, this reflects that the sales associates are likely performing more in a customer service role - ensuring that current customers continue to purchase ...

Solution Summary

This solution is over 250 words and provides several questions which should be answered before changing a compensation plan for sales-based personnel. The questions will help to define key indicators on whether a change will be successful. The solution also explains possible changes, such as "flat pay" or commission.

Similar Posting

A large division within your organization is the inside sales team.

A large division within your organization is the inside sales team. Currently there are 60 sales representatives and that number is growing. The Vice President of Sales and Marketing has come to you, as Director of Compensation and Benefits, to request a review of the pay structure for his staff. He has been given the directive to increase sales volume so that the company may continue to grow and achieve its goals. He has asked for your recommendations on an incentive plan that will increase performance.

When he requests work from an outside department, this VP always wants to make sure he agrees with how something is done, as well as the desired result. Write a 2-3 page proposal to the VP explaining the process you will follow to determine what incentive plan would work for a sales organization. Detail the factors you would consider in your review. Propose your recommendations for an incentive plan design. Specify the end result you would expect to achieve.

View Full Posting Details