The problem: Simply put the company is experiencing high levels of staff turnover (leaving the...
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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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