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Inside Sales Commission Evaluation & Recommendations

Inside Sales Commission Evaluation & Recommendations. Cherie Fontanilla Paige Mauney Emily Moss Travis Orr Amber Shirley. Overview. Background & History Overview of Inside Sales Commission Strengths Weaknesses Recommendations. I.A. CPR Background & History.

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Inside Sales Commission Evaluation & Recommendations

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  1. Inside Sales Commission Evaluation & Recommendations Cherie Fontanilla Paige Mauney Emily Moss Travis Orr Amber Shirley

  2. Overview • Background & History • Overview of Inside Sales Commission • Strengths • Weaknesses • Recommendations

  3. I.A CPR Background & History • Nation’s leading full service event rental company • 30 years in the industry • 37 stores nationwide • 2009 Rental Company • of the Year (CPR, 2006) (Spotlight Awards, 2009)

  4. I.A Commission Structure • 90% of the sales goal must be met • 0.5% of sales divided among 3 employees (Laine Horton, personal communication, March 30, 2009)

  5. Relationship to Strategic Goals I.B (Classic Party Rentals, 2006)

  6. I.C Consistency with Performance Management • Dimensions • Strengths & Weaknesses • Goal Setting (Noe, 2008)

  7. I.C Consistency with Recruitment & Selection • Commission rewarded to salespeople who were selected through CPR’s Candidate Evaluation Form • Assess candidate’s KSAs • Identify strengths & weaknesses • Provide hiring recommendation

  8. I.C Consistency with Training & Development • Commission motivates salespeople to retain knowledge through comprehensive training • Commission develops teamwork (Kim Eatmon, personal communication, January 25, 2010) (Maureen Riley, personal communication, January 26, 2010)

  9. I.D Commission Evaluation • National Sales Committee • Same commission structure used across all CPR locations • Sales percentage increases, store wide revenue, sales volume increases and new marketplace establishment • Performance appraisals and periodic review (Mark Miller, personal communication, February 4, 2010) (Martocchio, 2009)

  10. II. Strengths • Maximizes teamwork between sales employees • Based off localized goal setting • Promotes customer service (Classic Party Rentals, 2006) (Hoeh, 2010) (Martocchio, 2009) (Resnick, 2009)

  11. II. Weaknesses • Below average commission rates • Do not use their performance management forms • Do not conduct performance reviews of their sales force (Hoe, 2010) (Maureen Riley, personal communication, January 26, 2010)

  12. III. Recommendations • Increase sales goal percentage as well as commission percentage • Implement performance reviews and utilize PM forms 3. Implement incentive programs

  13. III. Increasing Percentage • 1% commission added to 0.5% commission if 100% sales goal is reached • Timeline: Effective immediately • Cost: Dependent on dollar amount of sales generated • Ex: (Milkovich & Milkovich, 1992) (Davis & Farley, 1971)

  14. III. Performance Management • Implement annual reviews • Timeline: • July 2010 – initial evaluation • December 2010 – continue annually • Cost: • Time (Sandler, 2009)

  15. III. Incentive Program • Contest between the inside sales employees • Written, online, or oral evaluations • Rewards: Gift Cards or Vacation Time • Timeline: (Churchill, 2007)

  16. Questions & Comments

  17. References (2006). Company History. Retrieved Feb. 9, 2010, from Classic Party Rentals, Los Angeles, CA. Web site: http://classicpartyrentals.com/values/. (2009). Spotlight Awards. Retrieved March 31, 2010, from Event Solutions Magazine http://www.event-solutions.com/breaking_news/announcing_2009_spotlight_awards _recipients (2010). Motivating a Sales Force. Retrieved from http://www.businessknowledgesource.com/blog/motivating_a_sales_force_025797.html (2010). Ten Rules for Great Customer Service. Retrieved Feb. 22, 2010, from All Business. Web site: http://www.allbusiness.com/sales/customer-service/1023-1.html. Churchill, M. S. (2007, February 15). Benefits of Incentive Programs. Retrieved April 8, 2010, from http://ezinearticles.com/?Benefits-­of-­Incentive-­Programs&id=456209 Classic Party Rentals. (2007). Classic Party Rentals Human Resource Manual [Manual]. Davis, O. A., & Farley, J. U. (1971). Allocating sales force effort with commissions and quotas. Management Science, 18(4), 55-63. Retrieved from JSTOR database.

  18. References Hoe, Siew Cheng. (2010). How to Structure Commission Policy to Motivate Sales Staff. Retrieved from http://www.associatedcontent.com/article/1937010/how_to_structure_commission_policy.html?cat=3 Hoeh, J. (2010). Business Teamwork. Retrieved Feb. 22, 2010, from University of Michigan. Web site: http://www.deq.state.mi.us/documents/deq-ead-p2-p5-p5busteams.pdf. Martocchio, J J. (2009). Strategic Compensation: A Human Resource Management Approach (5th Edition). New Jersey: Prentice Hall. Milkovich, G., & Milkovich, C. (1992). Strengthening the pay-performance relationship: The research. Compensation Benefits Review, 24(53), 153-168. Retrieved from NCSU Libraries database. Noe, R.A. (2008). Employee training & development. New York, NY: McGraw-Hill Irwin. Resnick, M. (2009). Set SMART Goals For Incentive Programs. Retrieved Apr. 8, 2010, from Industrial Safety & Hygiene News, Business Source Premier. Web site: http://www.lib.ncsu.edu/cgi-bin/proxy.pl?server=http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=44087142&site=ehost-live&scope=site. Sandler, S. (2009). Boost the value of performance review . HR focus, 86(12), Retrieved from http://IOMA.com/HR

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