Optimization Study Of Sales Team Incentive Plans For Company C

With the comprehensive development of the economy in the 21 st century,the gradually conspicuous trend of globalization,and the rapid changes of domestic and overseas political,economic,technological and other environments,all these changes of the macro environment have brought profound impacts on the development of all industries.With the increasingly fierce competition of all industries,the enterprises must build their core competitiveness,take various efficient management and optimization measures in market development,organization and personnel management aspects,and fully embody the spirit of people oriented.Through all these efforts,the enterprise can strive for realizing scale effect,exploring more market shares,having employees to present their potential and achieving the growth of the enterprise.For many industries,especially the machinery manufacturing industry with extremely fierce competition at home and abroad,the scientific management and effective incentive plans for the sales team are powerful weapons for enterprises to seize market shares and improve profit during market competition.Through effective incentive mechanism,the enterprise should promote the sales team to maintain good working status and high morale,show a high sense of responsibility,and make full use of personal sales skills and abilities to create value for the enterprise.Company C is a wholly foreign-owned enterprise manufacturing pressure vessels,the group company of which is the advanced technology leader in the global pressure vessel manufacturing industry.Company C currently has four different sales divisions with about500 employees totally,around 40 employees in sales team included.With the development of recent years,the sales growth of the enterprise is slowing down.At present,the sales team exists the following problems: firstly,the sales team can’t achieve the goal of annual sales revenues,and the market share shows the trend of declining;secondly,the voluntary turnover rate of sales staff is high;finally,the sales team show low working enthusiasm and morale.In order to solve the existing problems among the sales team of Company C,the primary premise is to analyze the main causes of the problems and fully understand the real thoughts and actual demands of employees,to draft and implement effective plans correspondingly.Therefore,the author of paper has in-depth interviews with top management staff of four sales department(the Sales Directors)respectively,as well as one-to-one interviews with several Sales Managers,Sales Representatives and Sales supports.The author of paper also analyzes the data of voluntary resigning employees in sales department between year from 2016 to 2019,and invited the sales team to participate in the employee satisfaction survey.Through the investigation,interviews and data analysis,it has concluded that the main reason for the above problems existing in the sales team of Company C is that,the current incentive mechanism of Company C is invalid,failing to reach the expected motivating effect.Therefore,the main research issue of this paper is the optimization of the incentive plans for the sales team of Company C,which is a small and medium-sized enterprise in the machinery manufacturing industry.Scientific and effective incentive mechanism has remarkable effect on improving the working enthusiasm of sales staff,fully utilizing their working ability and potential,and achieving the performance target set by the organization.According to the Two Factor Theory raised by Herzberg,people’s incentive factors can be classified into Hygiene Factors and Motivational Factors according to dissatisfaction or satisfaction.Therefore,as for the practice guidance,the effective incentive schemes can be implemented respectively based on Hygiene Factors and Motivational Factors.First of all,after clearly stating the reasons of the problems in the sales team of Company C,the author of the paper takes the collected influenced factors to the failure of the sales incentive mechanism through interviews,data analysis and survey reports,and analyzes them in Hygiene Factors and Motivational Factors,to diagnose the problems in the sales team.Secondly,based on the specific influencing factors of Hygiene Factors,the author of paper puts forward to the optimization plan correspondingly,which includes the optimization plans of the Hygiene Factors such as salary and allowance management,sales incentive plans,benefit plans and management communication channels etc.Thirdly,based on the specific influencing factors of Motivational Factors,the author of paper puts forward to the optimization plans correspondingly,which includes the optimization plans of projects recognition and reward,work itself,training,professional knowledge competition,improvement suggestions,career development and etc.Starting with the incentive theory at home and abroad,based on related knowledge of the incentive theory,especially the study and thinking of Two Factor Theory,through the research of sales team in small and medium-sized enterprises in mechanical manufacturing industry,the author of paper puts forward to the corresponding optimization plans for Hygiene Factors and Motivational Factors,hoping to enrich and expand the theory research and application scope of the Two Factor Theory.At the same time,the incentive plans of the sales team is also a common concern of many enterprises.Based on the Two Factor Theory,the author of paper hopes that the research and practical application of the personnel incentive mechanism of Company C can provide some reference and help for the sales management of other enterprises in this industry.