Sales staff compensation design
I. Sales staff basic compensation model
In the modern market, the enterprise sales staff to implement the basic compensation model can be summarized as the following five:
(a) "pure salary system"
"Pure salary system"
"Pure salary system" refers to the sales staff salary is approved by the enterprise to give its basic salary, there is no part of the wage income linked to its sales performance.
"Pure salary system" refers to the salary of the sales staff is approved by the enterprise to give its basic salary, there is no part of the salary income linked to its sales performance. The compensation model is designed to balance the relative value of the positions within the enterprise.
"Pure salary system" can better reflect the relative fairness within the enterprise, in order to protect the income level of the sales staff and the enterprise to control their own sales costs and expenses have good results. However, the "pure salary system" and the sales performance of the sales force does not exist, can not effectively mobilize the subjective initiative of the sales force, and its average distribution will cause the sales team within the negative behavior, is not conducive to the smooth achievement of the sales objectives of the enterprise.
(2) "base salary + bonus"
"Base salary + bonus" refers to the salesperson's salary income by the enterprise to pay the basic salary and the completion of a certain sales target of the two parts of the bonus. The basic salary is stable, the bonus refers to the sales staff to complete the sales targets set at the beginning of the period to give incentives to reward.
The advantage of this compensation model is to ensure that the sales staff have a guaranteed income on the basis of a series of bonus incentives for sales staff set a series of indicators related to the development of the enterprise, to guide its reasonable sales behavior, and promote the harmonious and sustainable development of the enterprise. However, since the current sales of salespersons under this compensation model are not directly related to their compensation, it will make salespersons lack the necessary motivation to gain sales.
(3) "Base Salary + Business Commission"
"Base Salary + Business Commission" means that the salary income of a salesperson consists of two parts: the basic salary paid by the enterprise on a periodical basis and the sales commission which is directly linked to its sales performance. In general, the more difficult sales, sales performance on the subjective initiative of the sales staff rely more, the corresponding sales business commission will be relatively high.
This compensation model provides basic protection for the life of the sales staff, at the same time, the sales performance of the sales staff has a great incentive, is currently widely used in many enterprises a sales staff compensation model. However, this compensation model can lead to salespeople focusing on their own interests at all times, while neglecting the cohesion of the sales team and the overall interests of the enterprise.
The "base salary + business commission" compensation model can be distinguished into "high base salary + low commission" and "low base salary + high commission" compensation model. The former pays more attention to the stability of the sales staff, with a higher stable wage income to stabilize the working relationship between the sales staff and the enterprise; the latter is oriented to the performance of the sales staff, the performance of the sales staff to approve the vast majority of its salary income.
(4) "base salary + business commission + bonus"
"Base salary + business commission + bonus" refers to the salesperson's remuneration income from the enterprise's basic salary paid on a regular basis, the business commission issued on a regular basis according to sales performance and the bonus for completing certain sales targets. The three parts of the completion of a certain sales target of the enterprise's bonus.
This compensation model combines the advantages of basic salary, business commission and bonus, which can give full play to the incentive of compensation in mobilizing the subjective initiative of the sales force. Among them, the business commission can motivate the sales staff to pursue excellent performance, while the bonus will prompt the sales staff to pay more attention to their sales behavior. However, this compensation model has invariably increased the enterprise's compensation management costs, increased the professionalism of the operation of the compensation system, and there are also greater difficulties in the approval of sales, business commission rate, bonus payout rate and other aspects of the approval.
(E) "pure business commission system"
"Pure business commission system", also known as the commission system, refers to the salesperson's salary income is not a fixed part of the whole by the floating part of the payroll, that is, a certain percentage of the salesperson's business commission.
The advantages of this compensation model are significant, strong incentives, easy to operate, and low maintenance costs. However, under this compensation model, sales personnel face all the sales risk, once affected by economic and market factors, their income will be very unstable, and in this case, sales personnel will be driven by economic interests, keen to carry out lucrative transactions, in order to its personal short-term gains and even damage to the image of the enterprise and the long-term interests of the situation. At the same time, the compensation model will also lead to vicious competition among salespeople, weakening the stability and cohesion of the sales force.
The above five compensation models have their own advantages and disadvantages, in what case what kind of compensation model, generally take into account the quality of the sales force and the enterprise sales of products. In general, stable income is lower and higher variable income compensation model, more suitable for sales staff with rich sales experience, strong personal ability; stable income is higher and lower variable income compensation model is more suitable for the temporary experience is not enough, but there is a sales potential of the sales staff, and the construction of the sales force is more favorable.
Two, the problems in the design of sales personnel compensation
To design a good pay system, in addition to determining the pay model, but also must have a clearer judgment of the problems in the design of sales personnel compensation, to avoid the accumulation of problems. From the practice of sales personnel compensation system design, the current sales personnel compensation design in the following three main aspects of the problem:
First, the theoretical basis for compensation design is not sufficient. Enterprises are not able to understand the salary mode and level of similar sales staff due to the lack of effective market salary survey, and the salary program designed by them lacks of practical basis; at the same time, the salary management of sales staff by enterprise managers fails to make timely revisions along with the changes of business and sales staff, which is detached from the development of the enterprise and the reality of the growth of the sales staff, and can not be adapted to the fast-changing market environment.
Second, the goal of compensation design is not clear. Many companies carry out sales staff compensation design based on experience or copy the payroll model of other companies in the same industry, without combining the marketing objectives and strategies of the enterprise, and not directly linked to the sales targets and sales performance, although the level of compensation payment may be higher, but still can not achieve the sales target.
Third, the compensation design is not combined with the enterprise's cost and expense management. Many enterprises pay attention to sales staff compensation design only sales volume, sales expenditure, payment recovery and other sales indicators are not enough attention, resulting in excessive expenditure on sales staff costs, the enterprise owes money and difficult to recover, erosion of the enterprise's sales capital; there are also some enterprises, copying the industry benchmark enterprise's compensation program, did not take into account the cost of maintenance and operation of the compensation program, a direct impact on the enterprise's sales profits.
Three, how to design the salary of the sales staff
In the clear sales staff of the basic salary model and salary design of the basic problems, enterprises in the design of scientific and reasonable compensation system, but also need to comply with the following salary design principles and consider the following salary design factors:
(a) the principle of the design of the salary of the sales staff
1.Goal The principle of consistency. In the salary design of sales personnel, we must take into account the overall sales objectives of the enterprise, through a reasonable salary orientation, to guide the sales behavior of sales personnel always along the enterprise's established sales objectives and sales strategy, and to promote the healthy growth of sales personnel at the same time, to effectively achieve the overall sales objectives of the enterprise.
2. Effective incentive principle. Enterprises need to ensure that sales staff to get effective pay incentives, at the same time, effective incentives for sales staff pay level must refer to the income level of the market sales staff, pay level of the high and low choice to effectively motivate the sales staff's subjective initiative, and does not erode the profitability of the enterprise as the basic features.
3. Cost and expense control principle. Enterprise sales staff of the wage bill and the cost of maintenance of the compensation system must be controlled within certain limits, to be within the annual costs and expenses of the enterprise budget.
(ii) sales force compensation design considerations
1. enterprise or product life cycle stage. An enterprise and its products have its life cycle, from the creation of the period, the rapid development of the period, into maturity, and then into decline, the enterprise should be based on the development of each life cycle stage of different sales targets, and the implementation of different remuneration models. Such as new products on the market, because there is the unpredictability of product sales, the sales risk faced by sales staff will be very large, in this case, it is appropriate to use the "pure salary system" or "base salary + bonus" compensation model; when the product is recognized by the market, the sales risk faced by sales staff has been reduced. When the product is recognized by the market, the sales risk faced by the sales staff is reduced, and the enterprise is more concerned about increasing the market share of the product, it is appropriate to use the "base salary + business commission"; in the product to obtain sufficient market share, the brand will play a huge sales effect, it is proposed to use the "base salary + business commission + bonuses The remuneration model of "base salary + business commission + bonus" is to be adopted at this time.
2. The target market of the enterprise or product. For the product of different target markets, should be based on the characteristics of the target market, the sales staff to choose a different compensation model. In general, such as the enterprise will target market locked in the high-end customer base, then the enterprise should need to get with excellent quality and image of the sales staff, and such sales staff compensation is appropriate to use the "high base salary + low commission" compensation model; such as the enterprise will target market is locked in the general public, in this case will pay more attention to sales If the enterprise will target market in the general public, in this case will pay more attention to the sales skills of the sales staff, and therefore it is appropriate to use "low base salary + high commission" compensation model.
3. Realistic needs of salespeople. For different types of sales staff of the reality of the demand, the use of different pay model. Such as new sales staff, unfamiliar with the market business, in order to improve its sense of security and sense of belonging, can be used "pure salary system"; when the sales staff gradually familiar with the sales work, in order to improve the work of its subjective initiative, can be used "base salary + business commission"; for the sales performance, the development and maintenance of the market, the development and maintenance of the market. Excellent sales performance, development and maintenance of the market ability of the sales staff, to give the stability of work and incentives can effectively play its initiative, can be used "high base salary + low commission" compensation model; and the security requirements of low, high demand for incentives for the sales staff, to be adopted For salespersons who require less security and have a high demand for incentives, the remuneration model of "low base salary + high commission" is proposed to be adopted.
In addition, when designing the compensation of sales personnel, it is also necessary to consider the industry in which the enterprise is located and the competitive situation, the development strategy of the enterprise, the strength of the enterprise, the culture of the enterprise and other factors, and select the appropriate compensation model after comprehensive consideration of all factors.
(C) the combination of sales compensation design and performance appraisal
In the design of sales compensation program, the relationship between performance appraisal and compensation is the focus of the performance appraisal indicators and the corresponding weighting of the determination is very important. If the enterprise did not choose the appropriate performance indicators, and only sales as the assessment of sales staff performance as the only indicator, will lead to short-term behavior of sales staff, causing significant losses to the enterprise. If the enterprise wants to make the attention of the sales staff to focus on sales and arrival rate, then you can choose the sales, arrival rate as the assessment of sales staff performance indicators, but it will also lead to the defects of the sales staff only pay attention to the existing customers, ignoring the cultivation of the potential customer base. In order to avoid the occurrence of the above situation, the enterprise should use a more comprehensive assessment indicators, such as sales, sales profit, sales return rate, customer satisfaction, etc., and the use of scientific and effective methods to determine the corresponding weight of the indicators.
At the same time, the enterprise performance appraisal system design, should be from the actual starting point of the enterprise, the coordination of enterprises and departments and the interests of the relationship between employees. And in the process of performance and salary implementation, do a good job of the sales staff work process of the fact that the record and ensure that the process of transparency and fairness.
In the market economy, there is no one pay model is absolutely feasible, only the enterprise in the appropriate time to adopt a suitable pay system, and through such a pay mechanism to realize the harmonious and sustainable development of the sales force and the enterprise, this pay system is a good system is worth the enterprise to take. The design of the sales compensation system is also this reason, sales staff recognize and accept the pay system, it shows that this system is feasible, suitable for use.