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It is not only sales who are involved in selling products. Marketing, Customer service, Finance, Operation, . They are all involved in a direct or indirect way. Do they get commissions too?
Extra earnings in Over performance in sales which is revenue generating will work as a catalyst.
Any other functional area which directly has an impact on revenue or profit can also consider extra earnings for over performing.
Sure........to motivate to sales team they desrves for rewards like incentive,commission etc
Others department also deserves for the same but on their performance related to their department
I believe incentive is like fuel for sales person. Rather sales compensation package should be like40% salary and60% should come from sales incentive so that they should strive for more n more and it always works
This is debatable.
Salespeople gets a lower fixed salary than other departments. They work hard to bring in sales so they can earn commission.
Other departments gets a fixed salary (be it high or low) but they get paid for doing that particular job whereas sales has to go out and look for new customers. If they don't bring in new sales, they will not get any commission.
Commission is the most important thing in selling market as it motivates the employees to sell more and more products. Also it will make the employee think creative and innovative as he/she will be finding ways to sell the product. If there is only salary it will make only motivation for desk job, to make employees visit markets and sell the products it needs some bonus.
Yes, It's good to give commission to the sales team. Company will make good turnover! If the company is performing, every department will get its share on appraisal.
So the face of the company (Sales) needs to be papered a bit , to get a fair appraisal in the end
