Description
The doc explains on calculating salary and compensation for sales person based on his job profile.
Compensation Plan for a XYZ Company
To attract, retain and motivate salespeople, a company must have an appealing compensation plan. For an organization which is at the launch stage such as XYZ it needs a salesperson who is an independent self-starter. His/Her sales focus at this stage needs to be on deal making and sustained high efforts. The compensation role identified by us is based on his/her ability to capture accounts and reward high performance.
Components of Pay
Compensation is made up for the following –
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Basic Pay Annual Benefits o Allowances – eg. Medical Monthly Benefits o Allowances – eg. Conveyance, Telephone Retirals or Statutory Pay o Provident Fund o Gratuity
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The human resources required for XYZ personal and institutional selling as well as maintaining relations with retailers are – One Regional Sales Manager reporting to the VP Marketing 3 team members belonging to the sales force reporting to the RSM
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Sales Force Pay Break Up
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The basic pay for a sales executive would be Rs.20,000 approximately per month The variable pay is - 10% of gross salary for exceeding targets (Performance based pay – act as incentive) It will be provided on a quarterly basis. Gratuity would be 4.81% of the basic salary (Statutory Requirement) Provident Fund is 12% of basic salary (Statutory Requirement) Travel expenses will be reimbursed i.e. they will be given only on producing proof (train pass, transport co. bill) Fool Allowance will be Rs.1,500 per month depending upon the no. of days reported for work Medical Reimbursement will be provided on producing the doctor’s bill to an amount of Rs. 1,500 annually We will not be reimbursing telephone expenses or providing a telephone allowance at this stage. If any outgoing calls have to be made they will be made from the head office. We will not be providing HRA – House Rent Allowance
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Similar fixed and variable pay components would be applicable for the Regional Sales Manager except for a higher salary of Rs.30000 per month.
Salary Calculation for sales force member of XYZ
(A) Particulars Basic Salary Variable Pay for Performance (10% of Basic Salary) Food Allowance Monthly (Rs.) 20,000 2,000 1,500 23,500 Annually (Rs.) 240000 24000 18000 282000
(B)
Retirals P.F. (12% of Basic Salary) Gratuity (4.81% of Basic Salary) Fixed Gross Salary Cost to the Company
2,400 962 3,362 26,862
28800 11544 40344 3,22,344
doc_205236988.doc
The doc explains on calculating salary and compensation for sales person based on his job profile.
Compensation Plan for a XYZ Company
To attract, retain and motivate salespeople, a company must have an appealing compensation plan. For an organization which is at the launch stage such as XYZ it needs a salesperson who is an independent self-starter. His/Her sales focus at this stage needs to be on deal making and sustained high efforts. The compensation role identified by us is based on his/her ability to capture accounts and reward high performance.
Components of Pay
Compensation is made up for the following –
? ?
Basic Pay Annual Benefits o Allowances – eg. Medical Monthly Benefits o Allowances – eg. Conveyance, Telephone Retirals or Statutory Pay o Provident Fund o Gratuity
?
?
The human resources required for XYZ personal and institutional selling as well as maintaining relations with retailers are – One Regional Sales Manager reporting to the VP Marketing 3 team members belonging to the sales force reporting to the RSM
? ?
Sales Force Pay Break Up
? ?
The basic pay for a sales executive would be Rs.20,000 approximately per month The variable pay is - 10% of gross salary for exceeding targets (Performance based pay – act as incentive) It will be provided on a quarterly basis. Gratuity would be 4.81% of the basic salary (Statutory Requirement) Provident Fund is 12% of basic salary (Statutory Requirement) Travel expenses will be reimbursed i.e. they will be given only on producing proof (train pass, transport co. bill) Fool Allowance will be Rs.1,500 per month depending upon the no. of days reported for work Medical Reimbursement will be provided on producing the doctor’s bill to an amount of Rs. 1,500 annually We will not be reimbursing telephone expenses or providing a telephone allowance at this stage. If any outgoing calls have to be made they will be made from the head office. We will not be providing HRA – House Rent Allowance
? ? ?
?
?
?
?
Similar fixed and variable pay components would be applicable for the Regional Sales Manager except for a higher salary of Rs.30000 per month.
Salary Calculation for sales force member of XYZ
(A) Particulars Basic Salary Variable Pay for Performance (10% of Basic Salary) Food Allowance Monthly (Rs.) 20,000 2,000 1,500 23,500 Annually (Rs.) 240000 24000 18000 282000
(B)
Retirals P.F. (12% of Basic Salary) Gratuity (4.81% of Basic Salary) Fixed Gross Salary Cost to the Company
2,400 962 3,362 26,862
28800 11544 40344 3,22,344
doc_205236988.doc