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vering spectacular results are still important. ? Merit payment, as distinct from bonuses, create extra payroll costs when benefits such as pensions are related to base pay. ? A merit payment is, in effect, a permanent increase in salary, yet the quality of performance in future years may not justify this payment. ? Merit pay can result in an upward drift in payroll costs without a mensurate improvement in performance. ? Merit pay is effective as a motivator only if rewards are clearly related to performance and are of a significant value. Sales Incentive Plan Business Objectives Marketing Strategy Sales Strategy Coverage Model Sales Job Definition Quota and Crediting Compensation Plan Design Sales Plan Implementation The Sales Plan Total Compensation Architecture Base Salary/ Fixed Pay Variable Fixed Target Sales Incentive for Quota Achievement Profit Sharing Recognition Accelerated Incentives for Quota Overachievement Total Potential Rewards Performance $ Earnings FAT/MBO Stock Options* *Selective use based on position and performance, petency and future growth potential Above quota achievement + = Incentive Schemes For Sales Staff Where it is felt that sales staff need to be motivated by an incentive mission scheme the majority of panies find that the best approach is a basic mission on sales volume or, in more sophisticated firms, on the contribution to fixed costs and profits of the sales of each product group or product. The standard mission is typically set at about onethird of salary to provide a noticeable incentive without adversely affecting feelings of security. A successful sales mission plan should satisfy all the criteria listed above for bonus schemes. But it is particularly necessary to ensure the following: Incentive Schemes For Sales Staff A) The reward is fair in relation to the efforts of the sales representative. This means that attention has to be paid to setting and agreeing realistic and equitable targets, making allowances for special circumstances outside the control of the sales representative which might affect sales, and splitting mission fairly when more than one person has contributed to the sale。 whilst permanent health insurance are optional extras. ? Scale of benefits provided taking into account its cost to the pany and its perceived value to employees. ? Proportion of benefits to total remuneration a decision has to be made on the proportion of total remuneration to be allocated to other benefits which incur expenditure of cash by the pany. this policy decision is related to decisions on the range and scale of benefits provided. Benefits Policies ? Allowing choice a policy is required on the extent to which the pany should allow its employees to choose the benefits they want. ? Allocation of benefits the policy on the allocation of benefits determines the extent to which it is decided that a single status pany should be create. 。 C) The scheme does not encourage high pressure selling which results in an unacceptable level of returns, cancellations and plaints。 Salary Review Guidelines ? Guidelines on the distribution of increments ? an attempt to overe the varying standards of judgment leading to an ‘a(chǎn)ll my ducks are swans’ approach to rewarding staff. The distribution scale may be related to a guideline like this: Assessment Increment (%) Distribution A – outst