Friends,
I have a question regarding salaries and increment system.
We run a multiproduct trading company in exports. In our company we employ several sales person – Monthly Salary Range Rs. 35000 to Rs. 75000. Besides this, they get an annual performance bonus ranging from 1 - 8 lacs per person which is a direct proportion to his sales in his area.
Their job profiles remain unchanged year on year. The company structure is usually quite flat so they all continue to report to the Head of sales. The products they are selling, payment terms, profit margins and areas of operations also remain more or less similar every year. They do have sufficient opportunity to increase their sales by adding new customers, areas and products if they are able to since we have a relatively small marketshare of the total space.
There is no restriction on capital employed or supply side. Ofcourse all sales have to be made for safe payment terms which is probably the only limiting factor in increasing sales.
The question I have is :
1. Should the sales person get an annual increment every year on his fixed salary besides whatever annual bonus he may get based on his sales ?
OR
2. He should be expected to get the growth in his salary by using growth in his sales and thereby increasing his annual bonus ?
I would appreciate frank views on this and can post a synopsis back on the group.
Regards,
Andy
I have a question regarding salaries and increment system.
We run a multiproduct trading company in exports. In our company we employ several sales person – Monthly Salary Range Rs. 35000 to Rs. 75000. Besides this, they get an annual performance bonus ranging from 1 - 8 lacs per person which is a direct proportion to his sales in his area.
Their job profiles remain unchanged year on year. The company structure is usually quite flat so they all continue to report to the Head of sales. The products they are selling, payment terms, profit margins and areas of operations also remain more or less similar every year. They do have sufficient opportunity to increase their sales by adding new customers, areas and products if they are able to since we have a relatively small marketshare of the total space.
There is no restriction on capital employed or supply side. Ofcourse all sales have to be made for safe payment terms which is probably the only limiting factor in increasing sales.
The question I have is :
1. Should the sales person get an annual increment every year on his fixed salary besides whatever annual bonus he may get based on his sales ?
OR
2. He should be expected to get the growth in his salary by using growth in his sales and thereby increasing his annual bonus ?
I would appreciate frank views on this and can post a synopsis back on the group.
Regards,
Andy