Capuchin Sales Compensation Strategy
Keeping the sales team motivated and compensating them well is one of the top priorities of most companies, whether they are service providers or product sellers. An efficient, motivated sales team is effective & ensures the growth and progress of an organization. Therefore, employers develop or adopt several methods to encourage their sales teams and keep them in high spirits.
Providing sales compensation is the method employers use to align their sales teams with their company’s’ sales targets and goals. Sales Compensation is the reward that a company pays to its sales team member in return for their services and it may be comprised of basic salary, incentives, bonuses or commissions.
A sales compensation plan is used by the employer to develop
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Despite the importance of each component in understanding how equity operates, research within sales, and within other human resource management areas, rarely considers all components
A 2003 case study showed Capuchin monkeys displayed a stark aversion to inequity. When monkeys were offered the same reward (a cucumber slice) for doing the same task, 95% “participated,” or completed the task for a reward. But when some monkeys were offered a more appealing reward (a grape) in view of others, the percentage of those willing to perform the task for the cucumber slice dropped to 60%. And when one group received grapes for doing less or no work, the fraction of monkeys who were willing to do the task for cucumbers dropped to 20%. The experiment can teach us something about sales behavior: when sales incentive compensation is unfair or is perceived to be the salesforce’s motivation shrivels up. By definition, good salespeople are social creatures. Whether their motivation is to validate, commiserate, boast or just share, this openness extends to a conversation about what they
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They will tell management if they think quotas are equitable. They will say which territories are perceived to be the best, and, if given the choice, which territory they believe would maximize their income. This feedback obtained casually or formally, provides more than an opportunity for salespeople to vent their frustration. It can offer valuable insight into the precise reasons that the incentive compensation plan, quotas, or both are believed to be
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