Free Custom «Compensation and training program» Essay Paper

Introduction

Sales executives are involved in the sale of company goods and services to customers. These customers consists both existing and new customers (Dale, 2003). These customers range from individuals to retailer outlets as well as manufacturers and retailers. Sales executives are also mandated with identifying emerging markets and opportunities that arise from the ever changing markets (Dale, 2003). They aim at ensuring that there is commercial success in companies that they are working for. Sales representatives may work with a dynamic range of products including fast moving consumer goods e.g. foods, Consumer durable goods such as domestic equipment, Industrial and media supplies. The technical work activities depend on the job setting and the market.

The job setting is best distinguished between business to business (B2B) and business to consumer (B2C). The B2B sales involve two companies or businesses (Dale, 2003). This type of sales executive has to create as rapport with other business entities. He is also expected to research on the market as well as represent the product in a professional way (Dale, 2003). The business to consumer executive sells products to the end user who may include the direct consumers. An example is selling cars in a showroom. The job setting here requires the executive to ensure that he gets the right customer requirements through careful listening. He has to develop good relationships with existing customers. The executive has to act as an agent for his company when identifying new markets this may also include when negotiating deals with customers (Dale, 2003).

A total compensation strategy is a viable and important tool to the employees (Graham &Manas). The total compensation strategy is designed to reward goals achieved by employees in a company. The total compensation strategy can be unique and differentiated within organisations in terms of job groups (Graham &Manas). The performance results in various companies can be analysed well and organised to ensure that there are no performance gaps. A compensation strategy helps in attracting, developing and retaining new talent which helps increase performance within the organisation. This also helps in rewarding and motivating sales executives. The total compensation strategy has 5 components.

Base salary: This could be influenced by the sales executive’s education level, experience and period spent on the current job as well as the clientele that he has attracted.

Annual incentive plans, these are performed annually and are calculated by measuring the performance of the company against that of other similar companies. This could be in terms of sales made or the general performance (Graham &Manas).

Bonus plans. These are unrelated to the compensation strategy but play part in motivating the employee. However these do not relate to total compensation strategy in any way (Graham &Manas).

Long term incentive plans; these include the stock based plans; the rewards are based on cash plans, or stock performance objectives. The incentive plans, reward performance in two or five year terms

Perquisites: These are benefits that are compulsory for the normal running of the business. These include cars, Retirement plans and employee contracts.

The compensation strategy should be competitive so that it enables the company to attract, retain and reward quality staff m embers. A review of benefits and perquisites is also necessary from time to time (Graham &Manas).

Training program helps improve performance it covers a broad range of topics on products from sales to systems (Greenberg, 2003). A training program should be innovative to enhance marketing and improving contribution programmes. Sales executives training program should encompass the full spectrum of products (Greenberg, 2003). The sales programme is normally conducted to encourage the personnel to get a full understanding of the sales process and develop vital skills needed to improve creativeness and produce customized solutions in the field. The process and training is usually aimed at developing a good sales process, developing skills in preparation, presentation and communication (Greenberg, 2003). Meeting the company’s objectives gives and develops personal ethics.

Training need	Potential problem	Proposed training solution
Bad company impression	Low turnover Poor sales	Training on creating relationships and good network
Time wastage	Overall dissatisfaction n with sales	Formal training program using AEs
Poor monitoring and feed back	Unnoticed problems	Training on follow-up and monitoring
Low confidence level	General mentoring from the company	Formal hands on training
No communication with management	Poor management	Training by managers and company meetings

Evaluation of training programme is mainly through the company’s performance. Audits carried out periodically show the company’s performance within the given period. Basic objectives in the training can be viewed during this particular period. Evaluation can be through checking the attendance list (Greenberg, 2003). This is whereby the trainer checks whether all trainees attended the actual training classes. Benefits that accrue from training are usually seen during the sales and increase in customers or sale of the company’s products.