channeled in directions consistent with the overall strategic role of the salesforce within the firm. An advantage of the straight salary plan for compensating salespeople is that it: Provides a direct relationship between sales and expenses. It assures a steady minimum income to the salesmen. Even if the employee no longer does work on the account, so long as the account continues to perform, the employee will receive a cut of the profits. Straight salary offerings can also be good for attracting new talent that's concerned with stability. It is a highly attractive model, especially to start-ups who are seeking to penetrate a specific territory. 10. You are the sales manager of a large, multi-product company. 6. 6 Different Types of Compensation Plans and Benefits - The HR Digest \hline In many companies, basics plus bonus-based compensation plans are used as a way to motivate employees. Accounting and bookkeeping basics you need to run and grow your business. Katey Maddux is a paddle boarder, music lover, Zumba instructor, and Founder and CEO ofMillennial Accounting, LLC in Miami, Florida. Before making any decisions, consider what type of compensation you can offer potential employees and what the stipulations of that compensation plan are. This is one of the most reliable types of compensation plans. Focus on Service A straight salary can work well for sales positions for which a high focus on service is required, such as a salesperson who calls on retail stores on a regular basis to take orders and stock merchandise. Security and collaboration: The straight salary plan provides a more stress-free working environment for the salespersons. Usually, the type of compensation plan an organization chooses, and the type that an individual accepts, depends on the market conditions and the goals of those involved. virtually automatic, this form of commission rate would be appropriate: An example of a selling situation requiring a commission split would be. Which of the following conditions would indicate to the sales manager that the proportion of the The firm is looking for a Vice President for sales and promotion. If theyve just started a family, they may be looking for benefits like parental leave and the chance to work from home. Fringe Benefits and Salary Plan based upon the employee's rate of pay immediately preceding retirement. d. Annual rates of return on 150 mutual funds (xmin=.023,xmax=.097)\left(x_{\min }=.023, x_{\max }=.097\right)(xmin=.023,xmax=.097).
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