Please help me to draft an acceptance letter format to sales employees mentioning the salary will be dispersed on the basis of sales target achieved.
From India, Delhi
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From India, Delhi
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Dear Jasneet,
For all the regular employees "salary" is paid monthly. The definition of salary is money that is paid regularly for doing work.
Therefore, for all the regular employees, whether they work in sales department or otherwise, you must have fixed component of the salary. You cannot link the entire salary itself to the sales target. While you may obtain "acceptance" letter from the employees for the condition that you wanted to impose on them, nevertheless, putting up such condition itself is wrong.
In view of this, I recommend you modifying your views about the payment of monthly wages and salaries to the employees. You may bifurcate gross salary into fixed and variable components. Fixed salary cannot be less than minimum wages as prescribed by the state government.
Thanks,
Dinesh Divekar
From India, Bangalore
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8227For all the regular employees "salary" is paid monthly. The definition of salary is money that is paid regularly for doing work.
Therefore, for all the regular employees, whether they work in sales department or otherwise, you must have fixed component of the salary. You cannot link the entire salary itself to the sales target. While you may obtain "acceptance" letter from the employees for the condition that you wanted to impose on them, nevertheless, putting up such condition itself is wrong.
In view of this, I recommend you modifying your views about the payment of monthly wages and salaries to the employees. You may bifurcate gross salary into fixed and variable components. Fixed salary cannot be less than minimum wages as prescribed by the state government.
Thanks,
Dinesh Divekar
From India, Bangalore
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Hi Dinesh , What if employee is not working? As a sales Manager not able to give a single sale in three months time , in that case how to deal with that ?
From India, Delhi
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From India, Delhi
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Dear Jasneet,
Sales happen with patience. It requires aggressive follow-up. Going further, you have not mentioned the nature of your industry, type of product, whether B2B or B2C, direct or indirect sales, etc. For some types of sales, the sales cycle time is too long. Do you know what the average sales cycle time is for the various products sold by your company? How old is your company? How many sales calls are handled per day, week, or month in total? Have you determined the cold calls to hot calls ratio, hot calls to quotation ratio, and quotation to acquisition of PO ratio? Has anyone analyzed the success or failure of the sales calls? Have you compiled an inventory of errors made during sales calls? What measures are taken to prevent the recurrence of mistakes by the same salesperson or others?
Sales success also depends on the company's ability to bring uniformity to how sales calls are handled. Regardless of the customer type, should all salespersons handle calls in the same way? Do you follow a uniform approach or an individualistic approach?
To succeed in sales, extensive research on sales calls is required. Sales success relies on the knowledge infrastructure created by the company. What infrastructure have you established to reduce reliance on salespersons? I am asking these questions because I conduct a training program on [Effective Selling Skills](https://www.citehr.com/578671-trainer-required-training-sales-manager-delhi.html#post2340316). Click on the hyperlink for program details.
Deducting or removing a salesperson's salary due to "under-performance" is easy. Attrition of the sales force creates instability in the sales department and fosters demotivation. Have you calculated the cost of this demotivation?
Lastly, your query has been addressed in my previous response. Regardless of the failures in the field by the salespersons, your company is obligated to pay minimum wages to the salesperson or sales manager. Your company could have shown foresight and structured salaries accordingly. There is no point in crying over spilled milk now! Part of this could also be due to a recruitment mistake!
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Sales happen with patience. It requires aggressive follow-up. Going further, you have not mentioned the nature of your industry, type of product, whether B2B or B2C, direct or indirect sales, etc. For some types of sales, the sales cycle time is too long. Do you know what the average sales cycle time is for the various products sold by your company? How old is your company? How many sales calls are handled per day, week, or month in total? Have you determined the cold calls to hot calls ratio, hot calls to quotation ratio, and quotation to acquisition of PO ratio? Has anyone analyzed the success or failure of the sales calls? Have you compiled an inventory of errors made during sales calls? What measures are taken to prevent the recurrence of mistakes by the same salesperson or others?
Sales success also depends on the company's ability to bring uniformity to how sales calls are handled. Regardless of the customer type, should all salespersons handle calls in the same way? Do you follow a uniform approach or an individualistic approach?
To succeed in sales, extensive research on sales calls is required. Sales success relies on the knowledge infrastructure created by the company. What infrastructure have you established to reduce reliance on salespersons? I am asking these questions because I conduct a training program on [Effective Selling Skills](https://www.citehr.com/578671-trainer-required-training-sales-manager-delhi.html#post2340316). Click on the hyperlink for program details.
Deducting or removing a salesperson's salary due to "under-performance" is easy. Attrition of the sales force creates instability in the sales department and fosters demotivation. Have you calculated the cost of this demotivation?
Lastly, your query has been addressed in my previous response. Regardless of the failures in the field by the salespersons, your company is obligated to pay minimum wages to the salesperson or sales manager. Your company could have shown foresight and structured salaries accordingly. There is no point in crying over spilled milk now! Part of this could also be due to a recruitment mistake!
Thanks,
Dinesh Divekar
From India, Bangalore
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