Question:Our company offers B2B services, and we operate through a large on-field sales team. We are revising our compensation and benefits package. What is your advice on designing one that would match the current market standards and be competitive enough to attract the best talent? – Mahmoud K.
Answer: Hi Mahmoud, the purpose of a lucrative pay package is not only to retain and motivate your human assets, but also to attract the best talent the job market has to offer. With the current economy on its slow but sure road to recovery, this would be a good time to get the best the job market has to offer.
While designing a compensation plan for your sales team, some of the factors that you need to keep in mind are:
your industry,
nature of the product,
timeline of your typical sales cycle,
your market position and the
level of experience of your sales team member. Sales professionals face a tough job; they require optimal encouragement, motivation and incentive in order to function effectively. A properly designed salary plan must be geared both to the needs of the company and to the products or services the company sells. At the same time, it must attract good salesmen in the first place and then keep them motivated.
The three basic types of compensation plans that are available to sales management are: basic salary, commission, and combination (salary plus incentive) plans.
It’s helpful to take a look at results from
The Bayt.com Middle East and North Africa Salary Survey 2013 (May 2013), as the sentiments expressed by the respondents would give you an idea of the job market expectations. This survey also sheds light on salary trends and satisfaction levels in the region that you should know about:
Current Salary Trends in the Middle East and North Africa
- The majority of the respondents in the region express moderate to low satisfaction with the current salary they receive.
- The majority of GCC professionals say their package comprises of basic salary plus some additional benefits, and over half of the respondents from North Africa claim their current package only consists of basic salary.
- 66% of respondents believe that their current salary is lower than that of other companies in their industry.
- Eight in 10 believe that the cost of living will continue to increase.
Market Expectations and Sentiments
- 53% of respondents would prefer a completely fixed-pay structure, while 40% say they would prefer a partially fixed-pay structure, with a variable pay for commissions and incentives.
- Performance-based incentives and training and development courses are the two most sought out benefits that respondents would like to see in their package apart from their salary.
- 38% of professionals claim they did not receive a raise in the year 2012, and 26% do not expect a raise for this year either.
- 54% say they plan to look for a better job in the same industry within the next 12 months.
Salary as driver of company loyalty
- Not surprisingly, salary emerges as a strong driver of loyalty, as most respondents claim that their loyalty is directly linked to the salary they receive.
- Line managers and opportunities for long term career progression also have an impact on employee loyalty.
