Rewarding Sales Performance, Essay Example

The probability of any start-up company or organization penetrating in a competitive market depends on the ability to acquire a relatively high market share in a short period. In achieving this objective, serious marketing through sales executives is vital. The sales executives of any start-up company should be aggressive, aligned and need to be in coordination. The sales executives should also ensure that the quality of service provided to the customers is the right one so as to prevent the withdrawal of customers. Amidst these requirements, motivation through payment of wages is necessary. In this case, since the company is just starting, the levels of base salaries should be controlled. It is because the company still has variable sales and income. However, the wage rate should increase, and bonuses should be awarded to sales executives in case the organization or company objectives are achieved. During financial crises, the organization or company should cut the wages it offers its sales executives. Through this, the organization will be economically stable to survive in the market. When an organization is economically stable, its operations such as the payment of wages will run smoothly. In this case, the organization is a technological start-up and needs to attract more customers in order to penetrate in the competitive market. The sales executives will play an integral role in achieving this; hence, they should be motivated. The best sales incentive model that will apply to sales executives is the inflated commissions. The model involves the increase of the incentives of the first year and then paying normal rates for the other years in the contracts of the sales representative. The inflated commission model will motivate the sales executives, and they will work hard to attract customers to the technological start-up.

Despite adopting the inflated commission model, the wage rate should not be above that in the industry. The wage rate for sales executives in the industry is 45,000 Euros base annual gross salary. To maintain economic stability, the wage rate of the technological start-up will be 40,000 Euros base annual gross salary. The reason is that the company is a start-up and has not generated revenue or profits enough to pay 45,000 Euros annually to the sales executives like other already established and stable organizations. For the organization to offer a wage that is at the market level, it has to establish itself economically, by attracting customers that will ensure consistent revenue generation.

The sales incentive system that will be adopted by the technological start-up will have various characteristics. The incentive will be simple, in that it will be easier for the sales executives to understand. The other characteristic of the incentive system will be made public in printed materials and conversations so that the sales executives will be aware of its presence and attainability. Another characteristic of the incentive system that will be embraced by the technological start-up is that it should be knowledgeable. The incentive system will also be professional, in that, the sales executive operations and responsibilities will be carried out in a professional way. The incentive system will also represent the big picture of the technological start-up.

An incentive system with the above characteristics will enhance the development and competitive advantage of the technological start-up. The simplicity of the incentive system will play an integral role in motivating the sales executives. When the incentive system is simple, it will not be cumbersome for the sales executives; hence they will be motivated to reach out to several target customers thus enhancing the probability of the technological start-up acquiring a relatively high market share in a short period. Subsequently, the publicity of the incentive system will motivate the sales executives. Normally, people become psychologically prepared and happy when a reward is easily accessible or within reach. The technological start-up will make the incentive system public by printing on media and having conversations concerning it. This will raise the esteem and belief of the sales executives, and they will be motivated to work harder to help the start-up achieve its objectives. Employees having knowledge about the incentive system is a motivational factor for them. In extension, this enhances the chances of the start-up attracting more customers and acquiring a relatively high market share in a short period. It is for this reason that human resource managers of startup companies and organizations should dedicate time to have the employees educated or informed about their organizations’ incentive systems. The reason the incentive system should be professional is that it will be meant to replace daily efforts in equipping, supporting, and respecting the sales executives. Incentives that are not professional result in the poor management and running of organizations that might lead to failure or downfall, in the long run. An incentive system that represents the bigger picture of the technological start-up will motivate the sales executives. Sales motivation occurs in several ways including proper recruitment by Human Resource Managers, proper training for the sales executives, and giving direction to the sales executives. HR managers should note that sales motivation is not only about luring the sales executives by giving them tangible rewards but also by treating them well. Therefore, the incentive system should represent the whole process and this will motivate the sales executives, and as a result, they will work hard to ensure that the technological start-up acquires a relatively high market share in a short period.