A regional medical gases distributor had been operating on two sales compensation programs for years. Historically, sales representatives were paid 100% commission. But when the company began a period of rapid expansion, managers found it difficult to hire new sales professionals under the existing program. The new markets the company was moving into required sales representatives to have an engineering background.
The company found that the candidates having the necessary background perceived the 100% commission program as too risky and would gladly trade off some of the possible upside opportunity for some security. The company offered new sales representatives a salary and small commission with the intention of moving them into the 100% commission program once they saw ...
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A regional medical gases distributor had been operating on two sales compensation programs for years. Historically, sales representatives were paid 100% commission. But when the company began a period of rapid expansion, managers found it difficult to hire new sales professionals under the existing program. The new markets the company was moving into required sales representatives to have an engineering background.
The company found that the candidates having the necessary background perceived the 100% commission program as too risky and would gladly trade off some of the possible upside opportunity for some security. The company offered new sales representatives a salary and small commission with the intention of moving them into the 100% commission program once they saw ...
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