Trends in compensation managementIts divided into 4 broad categories• Compensation plan based on customer satisfaction

• Is an important tool of evaluating and rewarding sales people so not just sales volume

• Team compensation• B2B selling is done through team-selling strategy and cross-functional teams are

designed for handling customer objections in a better way

• Technological advances• changed the horizon of customer handling by sales people

• Global compensation management system• With customers spread across the globe and salespeople serve them via innovative

technology and operating over different boundaries and time limits

Steps in designing a compensation plan1. Determine sales force and compensation objectives

1. Manager should consider corporate objectives and objectives of sales people

2. Determine major compensation issues1. Compare firm’s payment structure with that of the industry and major competitors

3. Long term and short term compensation plans1. Low cost for the firm and reduction of employee attrition rates

4. Relate rewards to performance1. What is the sales performance of a salesperson

5. Measurement of performance1. Objective and transparent evaluation

6. Appraisal of the compensation plan1. Updated continuously in response to the environment