Sales Force Compensation
[Name of the Writer]
[Name of the Institution]
Sales Force Compensation
Task No: 1
In Order to Motivate the Sales Force to Produce the Highest Number of Clients, Describe Six (6) Features of an Effective Total Rewards Program.
Focusing on the arrangement is the very first and initial feature of the total rewards program. Most of the businesses and even all establish reward and recognition programs which are completely based on social and economic needs and requirements of individuals. But businesses or companies are needed to change their thoughts and focus to link rewarding tactics or strategy to human strategy and then linkage the human/people strategy to the ultimate business strategy for effectiveness. The ultimate goal is to bring the behaviors of employees in line with the goals of the company that proves to be more effective and highly successful for the organizations that operate and perform in a better way than those which perform commonly and whose performance is not too effective or successful. For the purpose to bring the behaviors of employees in line with the organizational goals and objectives, employers have to take steps and action through the development of an approach which figures out the needs and requirements (Zoltners, Zoltners, & Lorimer, 2006). As well as what employees want which would increase the loyalty of employees towards the business or organization. After that, the employer is needed to develop a total reward program which recognizes employees for what they contribute to the success of the organization.
The strategies and tactics of total reward would be successful in the way that individuals (employees) know the programs and backing it, hence educating a priority and creating communication or connection is also one of the features of the program. Strong and effective communication is not only good for eliminating confusion among and for the employees about the program but it would be increasing the ultimate value of the program perceived by the employees. Retention and attraction are improved through the communication of the value proposition. It also ensures understanding of employees that how the programs reinforce and sustenance the organization and brand as well as it drives their interest and participation (Frow, & Payne, 2011).
Asking employees about their wants and expectation would be a feature. Everyone is always concerned with the rewards and recognitions which cover or meet their expectation and needs and employees do so. Hence, every employee would not be rewarded in one way while the organization has to create a program in a way that attracts catch quality individuals and bring their interest and contribution. The process of asking for employees’ reviews and feedbacks and listening to them with their need and wants is the best way to know that which is more valued to employees over another (Zoltners, Zoltners, & Lorimer, 2006). It is possible through conducting the survey(s) where the organization would collect information about the employees’ feelings towards the programs. As well as, the organization would know that more beneficial aspects for employees in this way. Rewards and recognition are found beneficial in one case which is “when they (rewards) are valued to employees and impacts their associations with the company.”
Payment based on incentives is the next feature of the program. Payment of incentives has been found the most credible way by all organization for motivating the top and better performers. The organization may propose incentives in many forms like stocks and bonuses etc. The plan of offering incentives to employees is utilized to motivate employees to put their best efforts that ensure the organization’s success (Zoltners, Zoltners, & Lorimer, 2006). These programs do not only provide financial benefits to the organizations like higher profits while improving employees’ morale at the workplace which results in employees’ retention.
Beyond above, the fifth feature of the program strengthening and improving performance management systems and procedures. The dream of having top-class performance management systems in the organization can come true if the organization has potential and talented people (managers) who implement the system. Communication, collaboration, and teamwork are always encouraged by effective systems and procedures. The element of human is considered as the most crucial and key components in PMS. This element is known as the relationship and connection among managers and subordinates or employees. For gaining success, every organization needs to improve its managerial position holders (managers) to manage the performance rate of employees on key performance measures (Hsieh, & Chen, 2015).
Differentiating top and better performers from the rest is the last feature of the program. Better and even top performance should be treated in a special way such as offering higher financial incentives, higher recognition, and more development and learning opportunities. The provision of mentioned rewards and incentives would also be a way to inject motivation and encouragement in all others (Coughlan, & Narasimhan, 2009). So that they would also be working to put huge efforts and meet the desired performance standards and goals. They would also work to improve their productivity to meet goals and standards.
Task No: 2
Describe the Behaviors of the Sales Force that are Targeted with the Compensation Plan.
The compensation strategy is necessary for every business or organization as food for the human being. Every company or organization must have such a strategy which is associated with the business goals and objectives. The major goal is to develop an efficient compensation plan that should start with strong recompense philosophy. The philosophy will make sure that every program, system, and the procedure is going fine and work in the agreement with other system or program in the compensation strategy. Such compensation programs and strategies are highly crucial for motivating salespeople and associates and the determination of their motivation. The benefits and a highly competitive salary that Verizon Wireless offers to the sales force covers;
Financial incentives such as commissions etc. based on personal performance and overall outcomes of organizational performance.
The plan of 401,000 savings with the matching contributions of the company.
Paid leaves because of personal concerns, vacations and all other holidays.
Health and other vision and medical insurance
Skills enhancement tools and other tuitions and assistance as well as required developments.
The company does not only use the strategy of offering incentives for motivating employees while they make other payments like basic pay, monthly and annual rewards as well as sales commissions, etc. The plan also assists in defining culture and behaviors of salespeople or sales force as well as the inspirations that impact individuals towards engaging in a career of the salesperson. While on another side, the compensation plan is used to attract individuals towards the particular company not towards the job of the salesperson in any organization. The company (Verizon) utilizes the incentives which are associated with individuals personally on short term with have a direct connection with the sales performance. The company uses these incentives because they recognize their benefits for the company in terms of motivating and directing energies of the sales force.
Verizon uses incentives in the way that catch, and retain potential individuals who are encouraged and motivated to get more improved and take additional actions to gain the status of the top performer. Employees and even all individuals become better performance because of one major reason and goal. The reason or goal to earn higher amounts of money and get higher percentages in commissions as well as other financial incentives. They get these incentives in addition to their basic salary so this increase the total amount they usually get. So employees’ performance, compensations would have crucially positive outcomes. Those outcomes would also lead the business success and growth of the company.
Task No: 3
Assess How a Value Proposition is Achieved for Current and Future Employees in the Plan You have Outlined.
EVP (Employee Value Proposition) is one of the best tools which can be utilized by companies and businesses for employees’ engagement. The efficient Employee Value Proposition must inline the work experience as a whole, from the culture, values, and mission of the organization to the total rewards. This should be done through people and jobs as well as it needs an effective communication plan and strong brand strategy. All of the top players (companies) of all industries stay at the top because they always have a well-balanced, highly effective and differentiated and business and employees oriented EVP. The company (Verizon) has an effective and highly flexible compensation plan and strategies that help the company in meeting employees’ demands and needs. The company’s plan offers things which are valued by the employees like basic pay, financial incentives, commissions, and many learning opportunities. All of the programs of the company would assist the company in attraction and retention of potential individuals and talent to bring out positive business results and to accomplish the status of having a competitive advantage over others in the industry (Hsieh, & Chen, 2015).
Verizon does not just incentives based on personal performance and efforts while the7y reward their employees based on the overall business performance. Increase in revenues and other good results are also the things that allow employees to be recognized and rewarded for their contribution to the company's success. Verizon’s employees have access to the 401k plan of the company as well as on job training by7 the company’s management and leadership enables the employees to enhance their skills level, improve their efficiency and learn new things (Coughlan, & Narasimhan, 2009). This would enable employees for better performance which would further lead to their higher incentives. The companies that continuously invests in employees’ development always have better and effective Salesforce than those who do not do so.
The company has counted $300 million as an investment in the training and development of employees as well as they have invested more than 100 million dollars for tuition assistance of employees. These all develop effective EVP for Verizon which would engage existing employees and employees of the company in the future.
Task No: 4
Based Upon the Type of Plan You have Created; Indicate How Attracted You Think Future Salespeople may be to this Plan.
Quality employees can be attracted and retained if the company has an effective total reward program. People get inspired by the reward plans that meet their needs as well as it offers what they expect. Such plans attract individuals and then keep them retained for the long run. Rewards plans are not those which only meet the financial needs of employees while they also meet other needs like stable work environment, have balanced life, emotional recognition, and other rewards with the organization’s culture.
Value of the program by both existing and future employees will the base for determining program attractiveness. For instance, older existing employees would likely to value retirement plans while younger ones value learning programs.
Plan of the company is a total reward plan which meets all needs and expectation so this would be highly preferred by both existing and future employees because of its attractiveness. The plan offers a competitive salary, insurance, and many other plans like retirement and development. So, the plan will be much attractive because of the mentioned incentives while not ignoring paid vocations and many other provisions. Beyond that, the plan of the company is in line with the company's culture and individuals are recognized based on their personal performance and organizational success as a whole. With having learning and development opportunities, employees would be able to gain more knowledge and opportunities for learning (Babakus, et.al, 1999). Verizon also offers other offerings such as healthy lifestyle and convenient work practices.
The mentioned (all) are the components of total reward plan of the company which is joint with a communication plan. So, Verizon would be able to catch/attract talent and retain those top performers and gain a competitive advantage in the market and industry (Hsieh, & Chen, 2015).
References
Babakus, E., Cravens, D. W., Johnston, M., & Moncrief, W. C. (1999). The role of emotional exhaustion in Salesforce attitude and behavior relationships. Journal of the Academy of Marketing Science, 27(1), 58-70.
Coughlan, A. T., & Narasimhan, C. (2009). An empirical analysis of sales-force compensation plans. Journal of Business, 93-121.
Frow, P., & Payne, A. (2011). A stakeholder perspective of the value proposition concept. European journal of marketing, 45(1/2), 223-240.
Hsieh, Y. H., & Chen, H. M. (2015). Strategic fit among business competitive strategy, human resource strategy, and reward system. Academy of Strategic Management Journal, 10(2), 11.
Zoltners, A. A., Zoltners, P., & Lorimer, S. E. (2006). The complete guide to sales force incentive compensation: How to design and implement plans that work. Amacom Books.
