Home / Business / When Was The Last Time You Took A Hard Look At Your Compensation Plan
Hello Guest! login | Register

When Was The Last Time You Took A Hard Look At Your Compensation Plan , Business

Resource for When Was The Last Time You Took A Hard Look At Your Compensation Plan , Business with Articles arranged by categories . Continue for our current list of the When Was The Last Time You Took A Hard Look At Your Compensation Plan , Business


When Was The Last Time You Took A Hard Look At Your Compensation Plan?

Money is complicated.

If you just take a moment to consider what it means to people, you'll find it's potentially a zillion things. Obviously, it pays for performance, or so we hope.

A salesperson earns a commission because he persuaded a customer to buy. Money also pays people to show up. Countless assistants have been salaried to sit in a front office and wait for a phone to ring or someone to walk in.

Money is also a source of status. The more you earn, generally speaking, the more status points you get, at least from others who know they earn less.

We know that money isn't everything; it's just part of an overall compensation package that can include health and retirement benefits, paid vacations, and more.

I was consulting to a company that had a top salesperson, who kept her nose to the grindstone, and she outdistanced her peers by a wide margin. She wasn't necessarily more talented, but to her credit she worked harder.

Initially, I attributed her results to some internalized work ethic that told her it is good and proper to work your hardest, to give your all, and that this intangible motivation fueled her success.

I was wrong. Her manager confessed that she earned secret commissions. She got a percentage of the dollar value of each sale that followed from the appointments she set.

So, her pay was three times that of her peers, and from observing her, she had at least three times their motivation.

But why doesn't the company offer the same plan to everyone?

Not only would this be fair, but wouldn't it be motivating to them, too?

Moreover, the sales leader requires ZE

RO management attention; she is self-directed, 100%. That's what an effective compensation plan can do. It can cut the costs of supervision, dramatically, and the hassles, too.

But I sense that it will be hard to convince the company to alter its existing plan, because like most organizations, once there is a plan in effect, everyone is reluctant to change it.

Pity.


Dr. Gary S. Goodman, President of Customersatisfaction.com, is a popular keynote speaker, management consultant, and seminar leader and the best-selling author of 12 books, including Reach Out & Sell Someone® and Monitoring, Measuring & Managing Customer Service, and the audio program, "The Law of Large Numbers: How To Make Success Inevitable,” published by Nightingale-Conant. He is a frequent guest on radio and television, worldwide. A Ph.D. from USC's Annenberg School, a Loyola lawyer, and an MBA from the Peter F. Drucker School at Claremont Graduate University, Gary offers programs through UCLA Extension and numerous universities, trade associations, and other organizations in the United States and abroad. He holds the rank of Shodan, 1st Degree Black Belt in Kenpo Karate. He is headquartered in Glendale, California, and he can be reached at (818) 243-7338 or at: gary@customersatisfaction.com.


Submit YOUR Articles Here!!

If you are not sure what to do Please Contact Us
Submit max. to be added featured contributors.
To contribute to Articles4Ever.com, Please login

Not Registered yet? Click to Register it's FREE

Tell Your Friend


Search Site

 
Web Articles4Ever.com


More from Web