The sale force compensation business
The business world is getting very competitive all over the globe. Companies are now seeking different strategies to stay ahead of their competition. The most popular trend among companies worldwide today is the introduction of the total rewards programs for employees. Total reward programs refer to the benefits that employers give their employees in a company so as to retain them, attract new employees and to motivate the existing ones (WorldatWork- The Total Rewards Association, 2017). With competition among companies being very stiff, most companies are now seeking various strategies to retain talent in their companies. Employers have now realized that employees are a vital resource and acquiring the best talent and retaining them is the best strategy to minimize costs and increase profits (WorldatWork- Total Rewards Association, 2012). For companies that deal in the sale of various goods, sales staff is an important asset; therefore, a total reward system is more valuable than just spending more money. This paper, therefore, will present and discuss on the features of total reward program, conduct of the sales force, the value preposition plan and recommendations on the future sales people who should be implemented in the compensation plan.
There are several main features that distinguish the total reward system. Compensation is one of the features of total reward system as it is the most significant part of this program as it forms the basic pay form that involves both the fixed and variable pays alongside long term as well as short term motivation. The fixed amount of payment is basically the constant pay for each and every salesperson while the variable pay relies on the mechanism that is used such commission, performance pay, time rate payment as well as piece rate payment. Other incentives such as bonuses, sharing of benefits as well as share ownership are also part of the compensation program. Improved flexibility feature involves allowing the employees to have the flexibility that they require in terms of offering them workable working hours which would allow them to use their expertise appropriately as they work in the company. Benefits feature refers to factors that the workers are offered in their work in addition to their salary they mostly include allowances. Rewards and recognition feature involves appreciating of employees once they have done something that is pleasing and desirable. Work life balance feature involves the offering of support to the employees so that they can be able to strike a balance in their life. The six features is the opportunity feature which involves career progression program that would enhance the employees to be able to develop in their careers and for self.
Efficient as well as a collaborative compensation plan helps in boosting the productivity of the company’s sale so that they can be able to reach their long duration goals. Some of the major behaviors that the company targets in the sales team with the compensation plan is the introduction of new concepts in the organization with innovative viewpoints on some of the products desired by the consumers so as to be able to satisfy them and hence becoming competent in the competitive environment. The total reward system can only be successful if the target employees in sales have a number of behavioral traits desired by the employer. The first behavioral trait that the Javita Coffee Company desires in its employees is the ability to work as an individual with minimal supervision. This is because the total reward scheme at this company aims at rewarding each employee based on the level of performance of each sales representative on the bonus hierarchy (Javita Coffee Company, 2017). The other quality that sales people must have is the ability to work as a team because the team is considered as a single individual. The bonus packages at Javita Coffee include those that target the development of teams therefore emphasizing on the importance of teamwork (Javita Coffee Company, 2017). Therefore, for an effective rewards program, sales personnel must have the ability to work well on their own as well as in a team.
Value preposition in this company will be attained through the proper implementation of the six features of the total rewarding program. A total rewards scheme in a company like Javita is the best strategy to benefit its sales staff. A good reward system creates value for the employees through the right combination of money rewards and those that are non-monetary as well (Holeman, 2007). In order achieve value for the current and future employees using the total rewards strategy, the company must ensure that it effectively implements its rewards scheme. Proper implementations of the total rewards programs involve the selection of the best team and a clearly stated benefits plan for the team (Holeman, 2007). It is important to consider what the sales team needs as well as what the company itself needs for there to be the best value created from the total rewards program. At Javita Coffee, the company aims at creating the best value for its sales staff in the immediate period as well as the future through its weekly payment plans (Javita Coffee Company, 2017).
Competition for the best talent among companies has increased tremendously due to the fact that companies now recognize the vital role employees play in their businesses. The main strategy companies are deploying is to use the total rewards program to attract the best talent while retaining them and motivating them to perform better (WorldatWork- The Total Rewards Association, 2017). When a company creates the best value for its current employees using the total rewards strategy, then it becomes more attractive to other potential employees. For a company like Javita Coffee, the success of the current total reward system will definitely attract more potential sales people to the company. The reward system is a progressive one based on stages from the star bonus level to the higher levels of the hierarchy (Javita Coffee Company, 2017). The rewards program further benefits sales employees in the immediate and future period thus making it attractive to potential future sales people.
Compensation plan being the most significant method that the organization uses so as to attract, maintain and motivate their workers, it is also essential for them to integrate the changes that occurs within the company and thus being up to date. Employment participation through engagement is one of the compensation plans that the company should add onto the features of the compensation plan. Off job, vacations provisions to employees will also increase productivity in sales in the company. While the system of immediate payment might be complex to administer, it is more beneficial to the companies. At the Javita Coffee Company, timely payment of its sales staff has enabled the company to grow. At Javita, the company has a compensation program that enables its sales people to receive payments on a weekly routine (Javita Coffee Company, 2017). This system is motivational because sales people can organize their income for the immediate and future periods. Successful sales companies emphasize on the improvement of sales and any other aspects that sales leaders are responsible and accountable for. Therefore, such companies must work hard to ensure they retain the best sales people and motivate them to perform better. Personal performance of sales people at Javita Coffee Company is an essential matter to the employers. The basic key for the growth of Javita is the struggle by all sales people to reach the star level (Javita Coffee Company, 2017). The performance of each sales person is tracked to determine whether they fit the star and earn the star bonus reward offered by this company. The car bonus benefit lies above the star level and then as the levels rise, one qualifies to the top positions of managers and directors which have additional benefits. The focus on personal performance motivates sales people to work even harder in order to rise to the higher ranks with more responsibility and better benefits.
References
Holeman, R. L. (2007). Implementing Total Rewards Strategies. Alexandria: SHRM Foundation.
Javita Coffee Company. (2017). Compensation Plan. Retrieved 1 13, 2017, from javita.com: http://www.javita.com/opp_compensation
Javita Coffee. (2017). Who are We? Retrieved 1 13, 2017, from javita.com: http://www.javita.com/company
WorldatWork- The Total Rewards Association. (2017). What Is Total Rewards? Retrieved 1 13, 2017, from worldatwork.org: https://www.worldatwork.org/aboutus/html/aboutus-whatis.jsp
WorldatWork- Total Rewards Association. (2012). HOW THE WORLD'S BEST PAY THEIR SALESPEOPLE. New York: WorldatWork.
