Sales Personnel Compensation - Essay Example

Does Money Alone Matters to Sales Personnel? ID Lecturer Introduction to Sales Personnel Compensation Money is an important part of any sales professional’s work domains. If he is not paid in a proper manner, there are more chances that he will be feeling hard done by and de-motivated within his work realms. Sales personnel therefore find it very significant for their own selves that they should be paid in accordance with the competitive market rates1. Sales personnel find it their moral duty to ask for more compensation if they are not being given the same in a proper capacity. Their work regimes speak a great deal about the ways and means through which the same gets done. Sales personnel need motivation to get their tasks done in an amicable manner and this is the reason why sales management is often thought of as a difficult job. Sales personnel compensation is therefore given the importance due to a number of factors, all of which play their due role within the shaping up of work ideologies and the manner in which sales management has come about as a major force to reckon with. Therefore money takes the preference when it comes to understanding the real motivation behind the sales professionals2. If they are not paid properly, this could lead to a host of issues, all of which come directly under the aegis of low productivity and even lower morale exhibited on their part. Sales personnel compensation forms the backbone of discerning success under such quarters and an organization is always more than willing to hire the sales staff that understands its financial position and tries to balance their undertakings in the same light. Comparing Compensation Plans Some compensation plans are based on the fact that the employees (or sales professionals) get commissions based on their work manifestations. This means that if they do more work and have better sales figures than their colleagues, they get the best mileage when it comes to their compensation mechanisms. The ones who bring in fewer sales therefore face the brunt as they do not receive any commissions as such. On the same token, another compensation plan is rationalized by understanding that the sales professionals work on a fixed compensation and they would receive a salary no matter how much sales they make at the end of a particular time period3. This is in essence the normal mechanism of working where sales professionals are bringing in the desired quota of sales and thus looking to exploit the resources that are available at their disposal without paying too much heed towards receiving incentives in the form of commissions from the organization that they basically work for. Moreover, there are some compensation plans which work towards a mixture of both commissions and fixed salaries for the workers and employees. The last compensation plan is the most desired one for the employees as they know that they will receive a definitive pay at the end of the month plus the more they make the sale, the more would be their commission, which is indeed a very positive and encouraging aspect of this compensation plan. All these compensation plans have their relative merits and demerits but what is important is how these bring in sanity within the ranks of the sales professionals within their workplace domains. Implications of Pay on Sales Personnel Motivation Motivation with sales personnel is such an important key that without it the sales personnel would surely not be able to work to their best levels. If they believe that they are being hard done by the people who are known as their superiors, then there is reason enough to believe that whatever is being said or suggested in the name of professionalism is all a farce and would surely not bring in any dividends for them in the long term scheme of things4. The implications of pay on sales personnel motivation are such that this pay becomes their sole source of working towards the basis of building trust that their hard work is being encouraged and given the room that it so richly deserves. This is an important manifestation when one tries to realize the dictum of motivation and how the same affects the working ideologies of the sales personnel5. The employees (or the sales personnel) would feel that their work is being appreciated for what they are doing and hence they would give even more in the name of hard work and commitment in the future6. All such measures are deemed as very pivotal as far as comprehending the real basis of sales personnel motivation and how the same demands the increasing role of pay, increased wages, commissions and bonuses if seen within the proper contexts. Another perspective is that this pay would ask of them to remain accountable for their specific tasks and activities, and would keep them moving in the forward direction as far as their respective work regimes are concerned. Other Influencing Factors There are other influencing factors undoubtedly which play an important role at making the sales personnel realize how they remain motivated at work. What this means is that the support and assistance of the peers as well as the top management remains on the top of agenda when the sales personnel are seeking motivation to arrive within their ranks. Then again there are directives issued from the people who matter the most within any workplace environment to keep the sales personnel motivated so that they can give their best7. This can either be done through the facilitation of their pays or by simply appreciating them in front of people and awarding them financial incentives. There are several ways of comprehending how motivation can come about in full circle and what this would mean encouragement on the part of the people who matter the most8. The influencing factors are therefore quite in number but what is most important is how these factors would pave the way for success and accomplishment on the part of the people who matter the most within the workplace domains. Conclusion It would be justified to state here that sales personnel need motivation from a financial and economic perspective to remain on their feet and to showcase their true talents and abilities which will empower not only their own selves but also the success graphs of the organization that they are so dearly a part of. Their interaction with people remains supreme as far as understanding the dictum of motivation is concerned. However the financial angle takes the most coveted role if seen from a proper perspective as it defines the basis of success not only within their working ideologies but also from a mental standpoint. It is important that they achieve contentment and satisfaction from their work so that they could make the vital sale when the going gets tough9. This could be equally true for those moments where the work patterns are going alone fine and smoothly, and when sales figures are being met in a normal manner. All said and done, sales personnel motivation remains dependent on their salaries and the financial incentives which they receive every now and then10. If these salaries are not given on time, there could be serious consequences as far as their morale and work domains are concerned. It is only natural to think of these perspectives from a very decisive aspect because it means that the organization’s success or failure hinges on the sales personnel who work their heart out for its sake. References Arnold, E. (1993). Compensation and Motivation: Maximizing Employee Performance with Behavior-based Incentive Plans. Personnel Psychology, Vol. 46 Caudron, S. (1994). Tie Individual Pay to Team Success. Personnel Journal, Vol. 73, October Chonko, L. (1996). Pay Satisfaction and Sales Force Turnover: The Impact of Different Facets of Pay on Pay Satisfaction and Its Implications for Sales Force Management. Journal of Managerial Issues, Vol. 8 Green, T. (1999). Motivation, Beliefs, and Organizational Transformation. Quorum Books Greene, R. (1993). Compensation and Motivation. Mortgage Banking, Vol. 54, November Gunsch, D. (1991). Award Programs at Work. Personnel Journal, Vol. 70, September Hacker, H. (1990). Work Motivation. Lawrence Erlbaum Associates Long, R. (2001). Pay Systems and Organizational Flexibility. Canadian Journal of Administrative Sciences, Vol. 18 Mulvey, P. (1997). The Managers Workshop: Motivation (Version 1.0). Personnel Psychology, Vol. 50 Weitzul, J. (1993). Sales Force Dynamics: Motives, Management, Money, Marketplace. Quorum Books Read More