Question: solve This new position is the first outside sales position for UFS and John must carefully design a compensation package to motivate the Sales Representative
This new position is the first outside sales position for UFS and John must carefully design a compensation package to motivate the Sales Representative to locus his or her efforts on the appropriate activities. John wants to expand his business and sees two distinct opportunities to do so. Expanding the business through adding new customers is one approach, and John also sees an opportunity to expand the business through further development of relationships with current customers. Both of these activities. will take a great deal of time without promise of immediate 5 ales and the compensation structure should recognize that requinement. However, as a small business, the company must closely monitor their salary budget and therefore, connecting at least part of the solary to actual sales will help ensure that the Sales Representative generates the revenue necessary to support his or her position. What role will the compensation design play in motivating the Sales Representatives? What kind of sales incentive plan do you recommend? Why
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