Research on Innovation in the Design of Salary System of Sales Personnel in CT Corporation
XU Yunhong, WANG Huadong
School of Economics and Management, Hebei University of Engineering, P. R. China, 056038
Abstract: CT corporation is a sale enterprise of white liquor, the ruling salary system of sales personnel causes the sales personnel’s enthusiasm not to be high, the sales achievements to decline because of its less fairness and rationality inward, the sale volume of company products in April to June, 2009 fell bottom in recent years, many sales staffs changed their jobs, reform in the salary system of sales personnel was imperative. The present situation in the salary system of sales personnel in CT corporation is analyzed, based on the relevant theories of salary, and the improving measures are proposed according to the existing problems. A whole set of design project is proposed on seniority pay, performance related pay, welfare and bonus of sales personnel, and it is treated differently to company's ordinary sales personnel, supervisors, and sales managers, it is hoped that it can provide some ideas to improve the salary system of sales personnel for this company or similar enterprises, simultaneously, has certain significance to the white liquor industry.
Keywords: Sales personnel, Salary system, Innovation
Introduction
The present sales salary models of sales personnel usually consist of the pure commission system, the pure salary system, the basic system, the floating fixed quantity system, backwardness penalty system, the rank reward method and so on, but each kind of model has both its merits, and its the limitation. Only comprehensively utilizing each kind of typical model to play their strengths and avoid their weakness, establishing the scientific performance evaluation criteria and the salary management system to meet practical, suitable, and economical requirements and fully show the principles of justice, fair, competition and efficiency maximization, can arouse sales personnel’s enthusiasm to the great extent, keep the stability of outstanding sales personnel, and create the most profit value for the enterprises.
A lot of research work on the salary system has been done by the predecessor, and there are also many research results of salary system of sales personnel in different industries, for example, Research on Salary System of Auto Sales Personnel written by Tang xiao, Hu An-rong; Research on Salary System Reform of Sales Personnel in Communication Industry written by Cui Peng and so on. The white liquor industry is a traditional one with a long history, this industry’s dependence on technology updates is not strong, it often pays more attention to the operation by marketing aspect to achieve more value. But through the literature search, it is found that there is nearly not research on marketing personnel in the white liquor industry. The salary system of sales personnel in CT corporation is manly taken as the object studied, through the actual and thorough investigation to the corporation and a quantity of theoretical books and periodicals’ reading of design, it is diagnosed and analyzed to the present situation of salary system of sales personnel in CT corporation and this salary system is also optimized and designed and then the practical measures conforming to the white liquor sales personnel, and it simultaneously has certain significance to the white liquor industry.
Present Situation of Salary System of Sales Personnel in CT Corporation
Present situation of salary system of sales personnel in CT corporation
CT corporation is primarily in charge of its parent company’s selling operation, consists of the distribution department, the bulk purchasing department, the catering department and the wedding
banquet department and so on. It is equipped with one general manager, two deputy general managers, the distribution department has one manager, four supervisors and two offices, and each office is equipped with one supervisor. The bulk purchasing department, the catering department and the wedding banquet department are equipped with one manager respectively. Each department has the ordinary salesmen and promoters. The number of salesmen with the degree of senior school and below in the sales personnel is the biggest, followed by secondary, technical and bachelor degree with a small proportion. The average age of present sales personnel in is about 30 years old.
- Post pay: Monthly payment, the general manager is paid 5000 Yuan, the deputy general manager is 3000 Yuan, the manager in the distribution department is 2000 Yuan, the head of office is 1800 Yuan, each supervisor in the distribution department is 1200 Yuan, the ordinary sales person is 1000 Yuan and the new coming Sales person is 800 Yuan in the training period.
- Seniority pay: The corporation carries out a standard to all staffs, namely, seniority pay will be increased one yuan per month when seniority increase one year.
- Performance related pay (PRP): First, at the beginning of the year, determine the amount of PRP extracted from per piece to each kind of product in each market, the goal of sales task takes “piece” as the Unit of measurement, the total sales goals in different areas are different and are determined manly according to the sales completed situation of the previous year in this field. The selling expenses are required to be controlled within the budget and if exceeded, it will be deducted and fined.
- Welfare: 90 Yuan is deducted from the base wages to pay the old-age insurance every month. Every holiday and festival, there is consolation money or gifts, and non-periodical group traveling.
- Bonus: There is a prize of 50 Yuan per month to full attendance. There is also bonus given by way of the year-award award, mainl
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