Human Resource Management 14th Edition by Robert Mathis,Sean Valentine,John Jackson

Exercise 5

Discuss why variable pay-for-performance plans have become popular and what elements are needed to make them successful.
Your insurance company needs to update the sales incentive program for its sales/marketing representatives. Because of the growth in the volume and diversity of the products being sold, the existing system of having one incentive program for all sales marketers no longer meets the needs of the company. To maximize sales in each of the product lines, the system needs to provide an incentive and reward system to encourage employees to focus on their specific product lines while also cross-marketing the company's portfolio of other products. To identify the key facets of a sales commission program, visit websites including www.8020salesperformance.com/sales_compensation.html.
A. Would a compensation program that offered only commission work for your company? Why or why not?
B. What other incentives would assist the company in motivating the sales staff?