Human Resource Response
Should you work with the analyst in the sales office to improve the sales compensation program or simply take all of the work under the HR office’s control to improve the program, and why?
The best alternative here is to take all the work under the human resource office control and task it with the responsibility to change or improve the program. I believe that this is the best way to address this problem because the human resource office is likely to look at different factors that affect and determine compensation before coming up with a plan. In short, the human resource service is expected to employ more rationality when coming up with a program compared to the sales office. The sales office is only likely to focus on profits, which might impede the efforts to come up with an excellent compensation program that will motivate the sales department employees. However, it would also be prudent to consult with the sales office, to get a better understanding of the profession, and thus create a better reward system.
Would you recommend consolidating all the compensation functions under one operational area of the organization? Why or why not?
Yes. I would recommend consolidating all compensation functions under one operational area of the organization. With all compensation functions under one operational area, an organization will have an easy time to come up with compensation plans for the different employees. The organization will also have employees specially trained to handle compensation plans hence low chances of litigation due to compensation issues. Parsons (2018) notes that any organization with salespersons should be vigilant of its compliance with various laws that determine the payment of commissions and bonuses. To achieve this, and increase vigilance on different compensation plans, one department should handle all compensation issues.
What alternative approaches might you consider to address your organization’s sales force compensation challenge?
An alternative approach to address the organization’s sales force compensation challenge would be the use of various incentive vehicles for this department. Apart from commissions and bonuses, I recommend stock-based plans and any other reasonable prices for the salespersons. Kathryn (2016) also adds that the use of merit pay is outdated, and I recommend that the organization goes beyond merit pay to motivate its salespersons. Different factors determine employee performance, and one of them is the resources handed to them, their skills, and the tasks given to them. A broader perspective is critical, which will oversee the organization moving beyond money-based rewards to create a more fulfilling workplace.