Question: The problem: Simply put the company is experiencing high levels of staff turnover (leaving the company or going to different departments) plus a lack of

The problem: Simply put the company is experiencing high levels of staff turnover (leaving the company or going to different departments) plus a lack of performance (over achievement of quota) by the Best/Top Sales Representatives.

The total sales target for your team is $10,000,000 per year.

The team consists of:

Level 1: Inside Sales (IS) [2]

Level 2: Sales Representatives (SR). [4]

Level 3: Sales Managers (SM) [2]

NOTE: Numbers in brackets above [ 2,4] are number of salespeople in each role

Competitors of Black & Decker pay the following TOTAL compensation (includes fixed and variable pay like commission or bonus) at each level.

Level 1 Inside Sales . Total compensation = $ 20,000 to $50,000. Commission between 0 1% sales.

Level 2 Sales Representatives. Total compensation = $ 55,000 80,000. Commission between 0 3% of sales.

Level 3. Sales Managers. Total compensation = $ 100,000 175,000. Commission between 0 3.5% of sales.

Assumptions for Total Compensation at each level:

Level 1= No target. Focus on customer service and handling incoming customer calls.

Level 2 = 40% of the total team target, for the sales target amount see above. Divide equally.

Level 3 = 60% of the total team target, see above. Divide equally.

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