Posted at 07.10.2018
For the majority of the organizations, settlement plan is the key driving drive for motivating the whole sales force as they are the main element people getting together with the customers on regular basis. Corresponding to Skiera and Albers (2008), the full total rewards approach comprises of all the tools available with the company for bringing in, motivating and rewarding the employees appropriately. The main aim of this process is to speed up desired actions in the complete labor force along with encouragement of overall business strategy that will boost the firm's performance (Mia & Evans, 2007).
Unilever ensures that is total rewards program is supportive to achieve the desired targets of the company and the Human Resource (HR) experts of the company have ensured that this has six features that are essential for the potency of this program (WorldatWork, 2007). The main features of the full total rewards strategy are as follows:
Compensation - It is the most important part of the complete program as it is the basic pay structure that consists of both fixed and variable pays off along with long-term and short-term incentives. The set amount is the bottom salary which remains continuous for every salesperson and the varying pay would depend on the method used i. e. commission payment, pay-for-performance, piece-rate pay, time-rate pay while others. The other bonuses comprise of bonus deals, profit-sharing, ownership show and etc.
Enhanced flexibility - The employees want for flexible working hours that permit them to work with their skills correctly while focusing on the job.
Benefits - These are the factors that the employees want for in their jobs as well as the monetary payment that they get such as medical benefits, life insurance coverage benefits, interpersonal security, unemployment and etc.
Rewards and Acceptance - When employees achieve something highly advisable or challenging, they have to be shown the gratitude either giving them rewards in the form of bonuses, profit showing, share ownership or announcing the success within the organization to declare the individuals valuable contribution in the company.
Work-life balance - The employees have to provided support in retaining adequate balance between the work, personal life and community responsibilities. They can be provided financial support, paid and unpaid trips, looking after dependents and community involvement opportunities.
Opportunities for development and profession progression - To be able to wthhold the employees for long-term, this program should put together the career development journey that is essential for the improved motivation level of the complete sales force.
Describe the habits of the sales team that are targeted with the payment plan.
With the help of a powerful and well-integrated settlement plan, Unilever will try to boost the efficiency of its sales force in order to make it in get together the long-term goals. The key behaviors that are targeted in sales force with an efficient payment plan are having new ideas and principles in the company, suggesting innovative products that are desired by the customers for enhancing their satisfaction level, creating competition among salespeople in order that they make an effort to make increasing sales and promoting proper and honest span of business activities for get together the organizational targets effectively (Zoltners, Sinha & Lorimer, 2006).
When employees will be happy with the payment plan and will believe that they are really being compensated for his or her efforts adequately, they will become loyal to the company and the worker turnover rate will certainly reduce drastically. The entire employee cost will go down and the business will be able to maintain a proper balance between the employee's value and organization's goals.
Assess what sort of value proposition is achieved for current and future employees in the program you have outlined.
According to Cichelli (2010), the reimbursement plan created by Unilever comprises of the following factors:
Commission (With regards to the sales created by each salesperson)
Bonuses (10% of the bottom pay)
Benefits - Health care, Life insurance, Old age, Community security, community support programs, paid getaways and financial support.
Rewards and reputation - Merit centered increase at the entire year end after performance appraisal and earnings showing for exceeding the target level.
Career growth opportunities - Each sales rep will get specific focuses on to provide chances for moving in advance in their opportunities and make an effort to get marketed to more additional levels.
The basic school of thought underlying the full total rewards approach is that the employees should be provided complete value from the entire compensation plan. The key elements required for creating the most effective value proposition for any current and potential employees are colleagues, work responsibilities, company culture, worth and total rewards. Most of the employees make their final decision based on the rewards that are visible to them and they give less importance to the non-monetary rewards that are given through the job tenure (How, Sundram & Tack, 2011).
From the reimbursement plan specified, it is noticeable that the company highly values its sales people and has used every important measure to give a conducive, encouraging and accommodating working environment to them that will elicit desired working habit along with enhanced motivation level. To be able to create the effective value proposition, the compensation plan of every worker is aligned with the organization's goals and they are provided the right tools and opportunities that will help them in attaining their yearly goals efficiently.
Based upon the type of plan you have created, suggest how seduced you think future salespeople may be to this plan.
Since the compensation plan is one of the vital methods used by organizations to draw in, retain and inspire the employees, it is important for them to keep on adding the changes within the plan so that it is up-to-date. Although the designed compensation plan is a general one however the most effective is that which calls for account of each employees' needs and develop the program in accordance with their targets. Sometimes the employers forget the individual requirements of every sales rep and design an idea that is effective for the organization.
In order to catch the attention of more sales people, there are various features that should be added in the reimbursement plan such as employee engagement activities, off-the-job training programs, promoting the concepts of vacations for boosting the productivity level and including attractive rewards that could keep the sales rep glued to the job and will find the work interesting and captivating.
Hence, it is important to upgrade the compensation anticipate an ongoing basis so that we now have no loopholes in them and the sales force is content with the rewards strategy. However, the main element to keeping the employees determined and improving their retention desire is to offer them the settlement and rewards in accordance with their requirements in order that they feel appreciated and are willing to go a supplementary mile to aid the company in fulfillment of its objective and aims.