Sales Force Compensation - Term Paper Example

Sales Force Compensation Abstract Observing the provision of a total rewards program has been the centerpiece of organizational success. Total rewards program places the interests, welfare and progress of the employee and the working environment, yet the employee and the nature of work environment are the most potent catalysts in the attainment of performance target, since the total rewards program is the glue that sticks talent and an organization to each other. Thus, the applicability of observing total rewards program is the fulcrum upon which the attainment of successful netting in of skilled salespersons (like all other employees) can be realized, vis-à-vis, Nike Inc. Introduction Total rewards program refers to all the tools that are available to the employer, with which he may attract, retain and motivate employees. As such, the use of total rewards program as a way of attracting, retaining and motivating employees involves the extension of what an employee perceives as being of value to that employee. The need for an effective Total rewards program is underscored by firms being solely dependent upon it for growth, stability and overall success. Likewise, the success of a firm that wants to have an effective sales force must use total rewards program, the size of that firm notwithstanding. 1. Six Features of an Effective Total Rewards Program In order to motivate the sales force to produce the highest number of clients, there are six features of an effective total rewards program that should be put to use. One of the features that of an effective total rewards program that will help is compensation. Compensation is the pay that is extended to an employee for the services that the employee renders. Compensation should not only include both short and long-term rewards. Fair and effective compensation is that which supports the organization's goals, mission and business objectives. It is against this backdrop that Nike Inc. provides its personnel with very competitive salary that totally complements employees' duties, roles and responsibilities. Another feature of an effective total rewards program that should be put to use is the definition and moderation of work-life. Work-life comprises a particular set of organizational policies, practices, programs and philosophy which actively sustain and support efforts to help employees attain success both at the workplace, and at home. Some of the examples and facets of work-life include job sharing, telecommuting, sabbaticals, flexible work hours, compressed workweek, and continued education. Nike Inc allows sabbaticals for its employees annually. Employees who have worked with Nike Inc. for five years are entitled for two-week rest while those who have worked with the firm for more than six years are entitled for a one-month's leave. Nike Inc's sales and marketing department and employees are the best paid in the sportswear industry, according to Borgardus (2006). Failure to observe proper work-life easily paves way for dissatisfaction and de-motivation among employees. In another wavelength, Nike Inc or any other organization that is serious about its effective total rewards program must factor its benefit program into consideration. Benefits refer to programs that an employer dispenses to supplement monetary emoluments that are given to employees. Aspects of these benefits include income protection, retirement programs, health and savings. Cichelli (2010) divulges that a well-designed program may not be generic, but needs to customize the diverse workforce which makes up Nike Inc.'s retail and organization. Nike Inc.'s benefit program will help its selling and promotion undertakings since Nike Inc. provides health insurance, disability insurance, life and accident insurance, paid sabbaticals, tuition assistance, product discounts, transportation allowance and discount, onsite fitness discount and onsite fitness center, employee stock purchase plan that goes up to 15% discount, paid vacation and holidays and retirement savings plan which is accompanied with a company contribution. All these benefits provide Nike Inc.'s sales and marketing personnel highly motivated. Philips (2012) states clearly that development and career opportunities are other meaningful facets of an effective total rewards program. This relates to a set of learning experiences that are designed to uplift employees' applied competencies and skills. Development engages and enables employees to perform more efficiently, faster and engages and enables leaders to advance their firm's people strategies. Nike Inc.'s sales and marketing endeavors are bound to succeed since it has development and career opportunities which assimilate the best and brightest into the most suitable Nike Inc.'s offices and positions. To this effect, Nike Inc. consistently uses meritocracy when recruiting, to ensure that the recruitment process is open, competitive and concomitant with its goals. Of great importance, is the fact that Nike Inc. uses performance recognition, as a very important part of total rewards program. Performance refers to the alignment of organizational, individual and team effort towards the realization of business goals and organizational success, while recognition refers to the acknowledgement and the extension of special attention to employees who exhibit exemplary skills in their line of duty. The importance of performance and recognition in Nike Inc.'s line of work is that serves the psychological needs for appreciation of an individual or a team's efforts. This culture which Nike Inc. uses is instrumental in inculcating and reinforcing skills and behavior which contribute to the realization of organizational success. According to Cichelli (2010), another important facet of total rewards program which Nike Inc. has put to use is globalization. The importance of factoring globalization in an organization's operations is based on the fact that like many other organizations, Nike Inc. is a multinational. Multinationals are in turn bound by both international and domestic labor laws. 2. Describing the Behaviors of the Sales Force That Are Targeted with the Compensation Plan The sales force being targeted with the compensation plan must be having necessary academic background to make it suitable for the roles that are specific to a given office. This may involve having a degree or a higher diploma in the relevant field such as sales and marketing. Since the process of recruiting the sales task force is to be based on merit, the process of recruitment is to be made competitive. Thus, interviews and aptitude tests are to be used to gauge professional skills of every candidate who has applied to join the task force. The sales task force should also possess strong interpersonal skills, so as to aid sales and marketing activities that are aimed at promoting Nike Inc.'s design. Because of this, a strong command on the local language (the language autochthonous to the market) and the ability to nurture and maintain the spirit of teamwork are some of the desirable traits to help the organization achieve its goals. Employees in the sales task force will also need to have self-discipline, since they will need to have the ability to beat strict deadline and to work under minimal or no supervision. 3. Assessing How a Value Proposition Is Achieved for Current and Future Employees in the Plan Has Been Outlined For future employees (salespeople), the value proposition will amount to, making the terms and conditions of employment well known. Some of the contents that must be specified as part of the terms and conditions of employment are competitive emoluments, moderation of work-life, competitive development and career opportunities, the acknowledgement and observation of performance recognition and the integration of global trends in carrying out total rewards program and in determining the terms and conditions of employment. As for current employees, value proposition will be achieved by consistently implementing the contents of the terms and conditions of the engagement that has been specified above. 4. Attraction of Future Salespeople to This Plan Based upon the type of plan that has been created, future salespeople are likely to be attracted to this plan, since all the contents of the terms and conditions of employment have been taken care of. According to Colt and Perrin (2008), usually, what salespeople consider the most during job applications are the remunerations, work-life program and other benefits such as health allowances and programs. This is because, usually, sales and promotion jobs are rigorous and involve wide and distant travel and fieldwork. Because of this, it is only natural and logical that Nike Inc.'s salespeople or any other salespeople will want fair emoluments to complement their arduous work, access to healthcare services and allowances which will address the toll that sales and marketing may take on their health, and a favorable work-life which will allow room for good rest. References Borgardus, A. M. (2006). Human Resources. New York: SAGE Publications. Carter, T. (2008). Contemporary Sales Force Management. Washington: Haworth Press. Cichelli, J. D. (2010). Compensating the Sales Force: A Practical Guide to Designing Winning Sales Reward Programs. New York: McGraw Hill. Colt, B. S. & Perrin, T. (2008). The Sales Compensation Handbook. NY: AMACOM. Philips, M. J. (2012). Human Resources Management. London/NY: Phillips-Gully Publishing. Read More