A Company Sales Staff Compensation System Improvement Design Research

Established in 1995 and as one of the leaders in low voltage distribution industry,Company A takes an initiative to cope with the fierce competition with other transnational enterprises and local enterprises that develop in a fast pace, develop its own competitive forces and then is capable to make substantial development in low voltage distribution industry. All these fruits have a lot things to do with Company A's well-trained marketing team who are effective in implementation and aggressiveness in courage. As the important employees of the company, salespeople deal with the end users and play a significant role in the realization of sale targets and the implementation of the company's strategies. Accordingly, it is a practice to serve for the development of company to establish a salary system adaptive to the market and the company, design a proper salary system for the frontline salespeople, stabilize the sales team and motive the salespeople.Transnational enterprises always have their own sophisticated salary systems while these systems shall be adjusted subject to the specific situations in the process of enterprise localization. This paper applies modern salary theory and the method of linking theory with practice to analyze the current salary situation of frontline salespeople and explore the problems existing in Company A's salary system with the salary system of Company A's frontline salespeople. Also, with reference to the salary system of the outstanding enterprises in the same industry in China, it puts forward the principles that shall be complied with in the process of optimization and the specific target for optimization. Accordingly, an optimized salary system for Company A's frontline based on the original salary system shall be formulated, which shall service as effective stimulation for the frontline salespeople, promote the competiveness of the company and advance the further development of the company.The research findings in the paper contribute a little to the actual application of salary theory in enterprise and provide experience references for the enterprises in the low voltage industry to formulate their salary policies.