Question

After reviewing this week’s resources and your research, in your own words identify at least three factors involved in the compensation process. And Share with your classmates one your plan and why you feel it will be effective and adequately motivate your sales team towards organizational goals.

Answer 1

Three factors which will be involved in the compensation process are as follows:

1. Prior Experience or experience level of the employee
2. Educational qualification
3. Skill set in demand

These are the three primary factors which will be involved in the compensation process when an employee enters the a candidate enters the organization. But once the employee joins, the criteria for setting compensation changes, wherein the following factors will be involved or considered.

1. Individual performance
2. Team performance
3. Organization performance.

I would select an incentive based compensation package since all the efforts put in has to be recognized. There has to be a minimum wages which will be fixed as a standard salary package. The more the efforts they put in, they will be able to improve sales by maintaining and fixing targets. Each and every team will have to have their individual targets based on individual team's expertise. Hence not all team will get equal targets on par with input received. The targets for specific team will be so that the sales team is all motivated by means of incentives and other monitary benefit.