Background:

Your Selling Career at S-B&D Continues to progress. As a successful initial role as an Inside Sales representative and your more recent role as Territory manager where you acquitted yourself extremely well and delivered beyond expectation. This has led to your current promotion as Regional Sales manager Power Tools and member of the compensation committee.

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In this new role beyond leading a team of Territory Managers [TMs] you have been assigned the task of studying and bring forward and negotiating a recommendation to the SLT [Senior Leadership Team], The NAR Executive committee and an external consultant {TCG- Toronto Consulting Group] on a new sales compensation structure.

Simply put S-B&D is experiences high levels of staff turnover (leaving the company or going to different departments) plus the lack of performance [over-achieving quota] by the best Sales Representatives.

The SLT has high hopes for this committee and the recommendations, this is high profile and can only help your career, if done well. The Challenge from the SLT @ S-BD is: Study, bring Forward and Negotiate (as part of the Sales team) the following deliverables:

Your Assignment: [Outline a Sales compensation Plan, reduce turnover, increase efficiency]

Outline the elements of the sales compensation plan (by role / level) including:

Level 1: Inside Sales (IS)[4]

Level 2: Territory Managers (TMs) [10]

Level 3: Regional Sales Managers RSMs [3]; National Account Managers

NAMs [4]

NOTE: Numbers in brackets above [4] are number of salespeople in each role

NOTE 2 : Total Compensation assumptions include:

Level 1= $50,000 (OTE) * On Target Earnings

Level 2 = $100,000 (OTE)

Level 3 = $150,000 (OTE)

NOTE3: This will be specific to the Power Tools division of S-BD

NOTE 4: Directors/ VP/ CROs will be excluded for this phase of the project but could be part of a follow up committee.

Q3.Since Sales Staff Turnover has been raised as a key concern, outline what plan elements you would include to ensure better staff retention.

NOTE: Include in your thinking: Hiring/ onboarding (discuss with candidates what to look for/ industry choices and career paths; Long -term job outlooks; types of compensation and personality fit)

Also Consider: Salesperson motivation, training and performance management elements to better ensure the sales team stays engaged.