Effective Sales Compensation Plans（有效的销售报酬计划）.pdfVIP

Effective Sales Incentive Plans QUARTER 2, 2004 Overview The effectiveness of sales incentives and compensation from both the perspective of plan sponsors and plan participants remains elusive for many organizations because they rarely can maintain a balance between cost and outcome. If the cost is too high the plan sponsor wants to cut back in pay opportunity. If the outcome is too high relative to the cost, the sales force demands more money indirectly by going to a labor or product competitor. The following article addresses establishing a process for determining sales incentive effectiveness, establishing effective sales incentives and monitoring that effectiveness in the future. Introduction Business is always undergoing significant change; this has been a standard for competitive businesses for a long time. One of the oldest surviving companies in the world is the British firm, GKN. Clearly the pressure to generate new sales has been one constant over the years. “How GKN has managed to endure (245 years), with only one full-year loss, offers some unusual business lessons. It has adapted by adroitly figuring out when to switch to new products and new ways to make [and sell!] them. Its saga also demonstrates that many of todays biggest business issues arent new. Mega mergers stumbled. International trade and competition drove investments and politics. WSJ, March 16, 2004 Today the pressure to increase sales seems to be escalating due to pricing pressures caused by gains in productivity which is driving costs down. Although productivity is helping to boost profits for many organizations units sales growth can still be quite modest. How can a company effectively motivate its sales force in this environment? This is good question. First some background. The sales proce