Sales Consultants Compensation Plan For Metricon

1.0 Introduction

Metricon is a company that deals with the building of homes located in Australia. The company started its business in the year 1976 with a simple design and now they are aiming to build some stunning houses which will be favorable for the customer residing in Australia. As the company wants to maintain the position that it has in the market and therefore employing a large number of sales consultants for it. This study will evaluate a small plan that can be used for compensation and performance implementation of sales consultants by the company.

2.0 Discussion

2.1 Compensation package for the sales consultant

The compensation will be one of the important factors when it comes to hire and attract any talent for the sales team. The sales consultant is one of the critical jobs and the success of any company is depending on their performance. Thus to enhance the performance and motivate them the following plan can be evaluated by the Metricon company they need to includes some of the plans which are summarized as below

• Salary compensation plan: The Company needs to create a salary compensation plan according to the experience the individual has in that category. The sales associate often like as usual if the experience is more than the salary compensation package must be more. The sales consultant is responsible for ensuring that the customer must not face any issues and also to check whether all the store products are displayed properly or not. Thus the hourly rate must be between $19 to $30. Thus the salary for the sales associate having experience less than 1 year needs to be $45k and for the individual having experience in between 1-4 years must be between $45-55k. If it is more than 5 years then the salary needs to be between 55k-65k.
• Basic salary plus Bonus compensation plan: The Company Metricon needs to add some basic bonus as extra compensation for the better performance in that month. The extra bonus needs to be provided on a monthly basis like if the company Metricon provides a salary of $45k to any sales consultant then they can add more $5-10k as a bonus to appreciate the performance of sales consultant who achieves the most number of good feedbacks from customers.
• Absolute commission plan or incentive plan: The extra incentive of $1,000 can be provided to the sales consultant if they are able to bring a new customer in the service. This incentive will help in improving the motivation in the employees of company Metricon.

2.2 Justification

The job of a sales consultant is a difficult one as they have to face the criticism of many customers and at the same time has to manage it for company profitability. If the company likes Metricon who is having a reputable position in the market needs to hire the right talent then they should offer some attractive compensation package to the recruited sales consultant. The average salary which is offered in Australia mostly for this home-building sector is approximately $53. Thus the company Metricon needs to keep its offer better than this so that they cannot miss the right talent (Ghauri, 2018). There are many competitors around Australia for the company that can offer a better salary to this staff as a comparison to what Metricon is offering and thus staff cannot think once to leave or resign from the company in an early stage. The higher benefits like incentives after adding every single customer in a business can motivate the sales consultants at work. The compensation or bonus focused compensation plans provide tremendous growth to the company as the people start using the opportunity to make more money only if their income is set to a fixed salary-figure (openviewpartners.com, 2020).

2.3 Performance evaluation Management system implementation for Sales consultant

The management of sales performance is an essential step as it helps in the overall success of the team. The company Metricon needs to have better performance metrics which will help in measuring tasks and activities of each individual with relation to the actual objective of the business. The individual quota attainment approach can be used by company Metricon in which the percentage of sales target that is achieved by each sale consultants in a month can be used for benchmarking. Thus through it the result can be concluded that whether the team is having a hard time hitting the target or performing it smoothly. The tracking of the conversion rate of each sales associate like if the associate is having 100 leads and they can be able to convert 20 of them to the paying customer who is ready to buy a house then they can be offered total conversation rate of 20% and the sales manager or higher authority of Metricon can keep track of the performance metrics to understand the performance of each consultant (blog.hubspot.com, 2020).

The sales productivity metrics can be used by the company Metricon to measure the actual rate at which the sales-associate is able to reach the target. This can include factors like the percentage of total hours that are spent in prospecting, data entry, and how many closed deals were made in a day. The performance feedback must be provided by higher authority to make them aware of the reviews the company is receiving from customers about their performance. The sales performance management software like Oracle Engagement cloud can be used for clear analytics on sales performance (trustradius.com, 2020).

Reference List

Journals

• Ghauri, E., 2018. Performance evaluation of sales employees: a comparative investigation in the pharmaceutical industry. International Journal of Business Performance Management, 19(3), pp.253-279.

Websites

• blog.hubspot.com, (2020), Sales performance management, Available at: https://blog.hubspot.com/sales/sales-performance-management [Accessed on: 12.04.2020]
• openviewpartners.com, (2020), Creating a scalable competitive plan, Available at: https://openviewpartners.com/blog/creating-a-scalable-sales-compensation-plan/#.XrJ5L54zbIV [Accessed on: 12.04.2020]
• trustradius.com, (2020), Sales performance management, Available at: https://www.trustradius.com/sales-performance-management [Accessed on: 12.04.2020]