Chapter 10. Compensating for Results
The vast majority of U.S. sales forces use incentive compensation plans to motivate and encourage salespeople. Incentive plans have a major impact on organizations because they affect the type of person who is attracted to the sales job and they influence the activities and behaviors of salespeople. This chapter presents a framework for understanding the impact of a sales force compensation plan. The chapter provides specific, practical advice on how to make four key decisions regarding sales force compensation:
Level of pay: How do labor market forces, company profitability, and job-related factors affect compensation levels?
Salary versus incentive: What factors determine the right mix?
Performance measures ...
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