Competition is very prevalent between companies. One thing that separates a good company from a great company would be the compensation package. A good company would have the average benefits such as healthcare. According to an article titled Why Do Companies Pay For College, “Instead, tuition assistance appears to select better quality employees who stay on the job longer, at least in part to keep making use of that benefit” (Capalli, 2004, p.213). A great company would have tuition reimbursement, on-site wellness center and discounts for the employees.
Without a compensation package it can make the employee’s job more stressful, especially for a sales job. If sales representatives just work for commission; then what is there is no drive to stay with that company.
Evaluate whether or not the compensation system at Collegiate Promotions is effective.
A good compensation system can mean the difference between retention and turnover. The text defines a compensation package as “the mix of rewards employees receive from the organization” (Brown & Stewart, 2010, p.444). A compensation package can range from tuition assistance to having an on-site gym.
The only reward that the employees of Collegiate Promotion receive is commission from the products they sell. According to the case study Collegiate Promotions, “The sales representative receives a commission of half the amount charged over the whole sale price” (Brown & Stewart, 2010, p.444). Even though the sale representatives are independent contractors, they still should receive more rewards then just compensation. The compensation package is not effective.
Discuss reasons a sales representative would try to sell at both the top and the bottom of the price range.
One reason why a sales representative would try to sell at the top of the price range is to get a…...