Where can I find the materials for the case study of executive compensation management?

Let me share one with you first.

First, the salary of enterprise sales staff.

1, business background

Company A is a domestic trading company mainly selling some mechanical parts, and also a subsidiary of a large state-owned machinery manufacturing company. There are three sources of products: (1) parent company; (2)OEM; (3) Acting as an agent for foreign brand manufacturers.

The company mainly sells personalized customized products for the domestic market, with tens of thousands of specifications and models, belonging to the small batch and multi-order business model.

The customer base is divided into two categories: long-term supporting customers and bulk customers.

2. The function and structure of the sales department

The sales department of Company A is mainly responsible for customer development, maintenance and taking orders. After receiving the order, the functions of order processing, purchasing, warehousing and logistics are completed by other departments respectively.

The internal structure of the sales department is as shown on the right: as shown in the figure, the industry manager is responsible for the business of a certain industry in the country, and other industries not involved by the industry manager are not subdivided, and the regional managers in each region are responsible for it respectively. The sales engineers under the industry manager are directly managed by the industry manager at the company headquarters. When stationed in other regions, the regional manager performs certain daily administrative work for them and provides certain support for their business, but they are still responsible to the industry manager in business. Therefore, the teams of industry managers and regional managers do not cross each other in business.

3. The general manager's confusion

The sales department is the locomotive of the company. The leaders of Company A have always attached great importance to the sales department and paid more competitively than the market wage. However, the general manager of the company was very confused recently and confided some of his feelings to us:

Sales manager "eats the old money"

"Managers of various industries and regional managers have been engaged in sales work in the company for many years, and customer resources have accumulated more and more. Many of them have established relationships for many years. Under the favorable economic environment of the whole country, the rapid development of customers has stimulated the demand for the company's products, which has led to the rapid and natural growth of managers' performance even if they do not develop new customers. At present, one of the main sources of income for managers is the commission obtained by multiplying the actual sales by the commission rate, which has remained unchanged for many years. In this case, managers can get a good increase in income even without making too much effort, which leads to their lack of motivation. "

2) "Cakes are cut in different sizes"

"In order to achieve specialization and avoid internal competition, the company has subdivided the market according to industries and regions. However, in the subdivision, the differences in market potential, market maturity and development difficulty of various industries and regions were not fully considered, which led some managers to feel unfair and think that if they go to another industry or region to make the same efforts, they can get higher sales and thus get higher income. "

3) One-sided pursuit of sales at the expense of profits

"The current commission calculation method is likely to lead employees to pursue sales unilaterally and ignore profits. We also saw this and realized that it would be more scientific to calculate the commission according to the profit. However, the purchase price, profit and other figures are the company's trade secrets. The fewer people know, the better, which is not suitable as a direct basis for calculating commissions. "

4) Facing the crisis of echelon fault.

"Managers are worried that recruiting a new sales engineer will distract their customer resources and reduce their influence; Once a sales engineer grows up, he will leave the team after being promoted to manager, and will take away customers and cause losses to himself. Based on these two reasons, the enthusiasm of managers to bring new people is not high, and some even prefer to fight alone, which is easy to form a talent gap, which is not conducive to the long-term development of the company. "

5) There is a serious brain drain of young salespeople.

"The salary model of company sales staff is the most common' basic salary+commission' model, and the basic salary of all managers is the same; The basic salary of all sales engineers is the same. Our starting point is completely performance-oriented, and we think this is the fairest and simplest incentive method. However, sales staff, especially sales engineers, have great opinions on this and the loss is serious. "

Try to analyze this and put forward a solution.

Salary design of incentive "locomotive" sales staff

Author: Dai Guixu

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Warehousing time: May 26th, 2006.

Consulting background

1. Work experience

Company A is a domestic trading company mainly selling some mechanical parts, and also a subsidiary of a large state-owned machinery manufacturing company. There are three sources of products: (1) parent company; (2) OEM; (3) Acting as an agent for foreign brand manufacturers.

The company mainly sells personalized customized products for the domestic market, with tens of thousands of specifications and models, belonging to the small batch and multi-order business model.

The customer base is divided into two categories: long-term supporting customers and bulk customers.

2. The function and structure of the sales department

The sales department of Company A is mainly responsible for customer development, maintenance and taking orders. After receiving the order, the functions of order processing, purchasing, warehousing and logistics are completed by other departments respectively.

The internal structure of the sales department is as shown on the right:

As shown in the figure, the industry manager is responsible for the business of a certain industry in the country, and other industries not involved by the industry manager are not subdivided, and the regional managers in each region are responsible for them respectively. The sales engineers under the industry manager are directly managed by the industry manager at the company headquarters. When stationed in other regions, the regional manager performs certain daily administrative work for them and provides certain support for their business, but they are still responsible to the industry manager in business. Therefore, the teams of industry managers and regional managers do not cross each other in business.

The general manager's confusion

The sales department is the locomotive of the company. The leaders of Company A have always attached great importance to the sales department and paid more competitively than the market wage. However, the general manager of the company was very confused recently and confided some of his feelings to us:

1. Sales manager "eats old money"

"Managers of various industries and regional managers have been engaged in sales work in the company for many years, and customer resources have accumulated more and more. Many of them have established relationships for many years. Under the favorable economic environment of the whole country, the rapid development of customers has stimulated the demand for the company's products, which has led to the rapid and natural growth of managers' performance even if they do not develop new customers. At present, one of the main sources of income for managers is the commission obtained by multiplying the actual sales by the commission rate, which has remained unchanged for many years. In this case, managers can get a good increase in income even without making too much effort, which leads to their lack of motivation. "

2. "The cake is cut into different sizes."

"In order to achieve specialization and avoid internal competition, the company has subdivided the market according to industries and regions. However, in the subdivision, the differences in market potential, market maturity and development difficulty of various industries and regions were not fully considered, which led some managers to feel unfair and think that if they go to another industry or region to make the same efforts, they can get higher sales and thus get higher income. "

3. Pursue sales unilaterally at the expense of profit.

"The current commission calculation method is likely to lead employees to pursue sales unilaterally and ignore profits. We also saw this and realized that it would be more scientific to calculate the commission according to the profit. However, the purchase price, profit and other figures are the company's trade secrets. The fewer people know, the better, which is not suitable as a direct basis for calculating commissions. "

4. Facing the crisis of echelon fault

"Managers are worried that recruiting a new sales engineer will distract their customer resources and reduce their influence; Once the sales engineer grows up, he will leave the team after being promoted to manager, and will take away customers and cause losses to himself. Based on these two reasons, the enthusiasm of managers to bring new people is not high, and some even prefer to fight alone, which is easy to form a talent gap, which is not conducive to the long-term development of the company. "

5. There is a serious brain drain of young salespeople.

"The salary model of company sales staff is the most common' basic salary+commission' model, and the basic salary of all managers is the same; The basic salary of all sales engineers is the same. Our starting point is completely performance-oriented, and we think this is the fairest and simplest incentive method. However, sales staff, especially sales engineers, have great opinions on this and the loss is serious. "

Based on the above confusion, the general manager of the company invited us to carry out consulting work on sales staff motivation.

problem analysis

After the consultant team entered Company A, they got a better understanding of its sales incentive policy through interviews with relevant personnel. Summing up the following questions is the reason why the general manager is confused:

1. The salary policy of salespeople is more about health care than encouragement.

1. The company has more health care for the salary policy of sales staff, but the incentive is insufficient.

Because most of the company's business is to provide accessories for supporting customers, the demand of these customers for products is periodic and stable. Once such customers are developed, as long as they spend less energy to maintain customer relationships and ensure that customers are not lost, they can obtain relatively stable sales performance. With the passage of time, such customers have accumulated more and more, which has brought stable income to the sales staff and become a kind of welfare for the sales staff, which has no incentive effect.

2. Lack of target incentive mechanism

There are differences in market potential, maturity and development difficulty in different industries and regions, so it is unfair to use the absolute value of sales as the direct basis for incentives. It is more reasonable to set different performance goals according to the differences between industries and regions, and then take the achievement degree of performance goals as the incentive basis.

3. Lack of scientific performance evaluation

The phenomena of "living on one's laurels" and "one-sided pursuit of sales volume" are all related to the lack of scientific and comprehensive performance appraisal mechanism for salespeople.

4. Lack of effective promotion mechanism

At present, there is only one channel for administrative promotion of sales staff: sales engineer > industry manager/regional manager & gt marketing minister, so the promotion opportunities are limited and the promotion time will be longer. Under the current wage policy, administrative promotion is basically the only way to increase wages. This is a very important reason for the brain drain of young salespeople.

5. Lack of effective team incentive mechanism

Due to the lack of overall motivation of the sales team and the unclear distribution of benefits within the team, some sales managers prefer to "go it alone".

solution

Based on the above diagnosis, we put forward a set of incentive scheme for sales staff with salary design as the core.

1. Determine the overall composition of wages.

Firstly, the overall composition of salary is determined as standard salary and commission, in which standard salary is divided into basic salary and performance salary. As shown in table 1:

2. Determine the standard wage level

This part of the design has three steps:

Step 1: Broaden promotion channels and divide industry managers/regional managers and sales engineers into five levels, as shown in Table 2:

Step 2: Establish the qualification standards of managers/salespeople at all levels, and establish standardized qualification evaluation procedures. According to the qualification standards and qualification evaluation procedures, the existing sales personnel are qualified and divided into different grades. It is also stipulated that in the future, the qualifications of sales personnel will be assessed regularly every year (except for interns who are converted into junior salesmen).

Step 3: Set different standard salary levels for managers/salespeople at different levels.

3. Determine the standard wage structure

There are three main problems in this part:

(1) For managers and sales engineers, the ratio of basic salary to performance salary is set at 70%: 30% and 80%: 20% respectively. For example, the standard salary of a middle-level manager is 4,000 yuan, so the basic salary and performance salary are 2,800 yuan and 1200 yuan respectively.

(2) Conduct performance appraisal on sales personnel every month, and the performance salary will fluctuate according to the appraisal level (see Table 3 for the floating ratio) as the actual performance salary:

For example, two middle managers got Grade A and Grade E through performance appraisal. Their actual performance salaries were 1800 yuan and 720 yuan, and their total salaries were 4,600 yuan and 3,520 yuan respectively.

⑶ The performance appraisal adopts the "8+ 1" performance quantification technology pioneered by Bai Mingdun, and the appraisal indicators include: the achievement rate of sales targets, the sales expense rate, the development of new customers, the collection rate, and the incidence of bad debts.

4. Method of determining royalties

(1) Basic Royalty Rules

First, set a target commission amount, which is equal to the salary standard ×××λ. For the business manager, we set λ as100%; For sales engineers, we set λ to 60%. The different setting of λ number determines the different proportion of commission to the total salary of sales staff.

Actual commission amount of employees = target commission amount × commission realization rate. The commission realization rate is influenced by two factors: the realization rate of sales target and the realization rate of sales price. As shown in Table 4:

Sales price realization rate, in which sales target realization rate = actual sales ÷ target sales × 100%.

⑵ Team motivation

It is divided into two steps:

Step 1: Calculate the total commission of the team.

The total commission of the team can be calculated according to the basic commission rules:

Total actual commission of the team = total target commission of the team × commission realization rate of the team;

Among them: the total target commission of the team is the sum of all individual target commissions of the team; After calculating the realization rate of team sales target and sales price, the realization rate of team commission is obtained according to Table 4.

Step 2: Distribution within the team

First, distribute the commission of the team leader:

Then, the commission of the general members of the team is distributed:

(3) Rolling distribution

The royalties shall be paid in quarterly cumulative way (with a portion paid in advance every month), namely:

Pay the first quarter commission at the end of the first quarter according to the completion of the first quarter performance target;

At the end of the second quarter, according to the completion of the sum of the performance targets in the first and second quarters, pay the royalties due in the first and second quarters, deducting the paid part in the first quarter;

At the end of the third quarter, according to the completion of the sum of the performance targets in the first to third quarters, pay the royalties due in the first three quarters, deducting the paid parts in the first and second quarters;

At the end of the year, pay the annual commission according to the completion of the annual performance target, deducting the paid part in the first three quarters.

(The picture above shows the schematic diagram of rolling distribution method. )