One of the biggest management challenges that a company faces is compensating salespeople effectively, which is a major challenge. Hence, it's important to select a sales incentive plan that meets the needs of the organization, attracts highly skilled employees, and motivates existing employees. Thus, UFS has proven to be successful with the growth of sales; however, there are contracts that take a degree of time to close out while the customer waits for current contracts to expire. Therefore, a mixed compensation plan which includes a base pay with a five percent commission for each sale that closes or new customers that are added.  Hence, the base pay is determined by considering the market rate base pay then for motivating the employee, the variable pay is offered. As such, the variable pay is offered to employees to improve performance and to enhance the customer satisfaction. This will motivate the sales reps to pursue customers that will close quickly as seeking out new customers. USF should also tie in other incentives to meet objectives that were set for the sales reps. The most critical business objective that is met should be acknowledged with a monetary form of recognition. For example, If the company exceeds its yearly financial goals the employees would receive a monetary bonus. In addition, the sales rep with the most contracts added for new customers receive an additional two-hundred-and-fifty-dollar bonus at the end of the year.

With increasing competition and rising labor cost companies may not have the budget to provide monetary incentives hence, there are forms of non-monetary gifts that can be awarded such as comp time, employee of the month recognition, and celebrating major milestones in employees lives. As such, these are low cost ways to show employees they are valued and appreciated.  Social events could also be offered as a reward for the team if company goals are met. As most sales reps do not have time to sit face to face and discuss sales tactics with each other that may leave those that are struggling to gain contracts without a chance to gain advice. Social or networking events will give the employees time to socialize with other employees in the business. Lower performers will have time to seek assistance from high performing employees since sales representatives are typically in the field trying to drum up new business. Providing employee development programs, mentoring, in house training, job related training and tuition reimbursement programs should also be offered to those with high potential without upping the compensation budget

Question: Do you think changing Superior's time off policies will decrease unscheduled time off? Why or why not?

Do you think changing Superior's time off policies will decrease unscheduled time off? Why or why not?

Identify and describe at least two disadvantages of offering PTO.