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Compensation Plans for Sales Employees - How to create a good Sales Compensation plan that motivates employees?



Steps in Devising a Good Sales Compensation Plan

A good Sales Compensation plan is a must for all companies, irrespective of their size. It is the responsibility of the Sales managers to motivate their team, and a large part of motivation comes from a good Sales Compensation Plan.

Checklist to Devise a Good Sales Compensation Plan for any organisation -

  • Define the sales Job

  • Study and analyse the organization's general compensation structure.

  • Research and analyze the current compensation patterns in the Industry.

  • Determine the compensation level. 

  • List all the important elements that make up a compensation plan and then make provisions for each one of them. 

  • Keep in mind the Company's overall needs and issues. 

  • Brainstorm and consult the present sales force.

  • Pre-test and write the plan.

  • Revise the plan based on the changes required.

  • Implement the plan and follow-up regularly to make sure it is running smoothly.

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