Sales Compensation and Expense Allowances

INTRODUCTION

Not all employees are the same, nor are the jobs they hold. Special compensation systems are needed to motivate employees who accept certain kinds of jobs. These employees have characteristics that allow them to respond well to the incentives and allowances that are part of their compensation package. This course covers one of these groups of employees – the sales force.

Overview

We will cover how to set base compensation, incentives and allowances for sales employees.

First we will show you how to create a sales compensation plan in 5 steps:

1. Identify business goals
2. Choose the type of plan
3. Select measures
4. Develop productivity metrics
5. Determine the sales cycle

Then we will review how to communicate the compensation plan and evaluate its effectiveness.

After this, we will examine special allowances, including:

• expense accounts
• automobiles
• per diems

At the end of this course, you should be able to develop and administer a cost-effective sales compensation plan for your organization.