Performance-based Pay Employee benefits are incentives that businesses create in order to draw employees to the company and reward them for good performance. Some benefits are bonus plans that award employees that make the most sales or have the highest production rates. Others are stock option plans that allow employees to purchase company stock at a discount. Incentive schemes are one of the most popular and potentially effective forms of benefits available for employees, particularly those involved in the sales process. These schemes reward those who meet or exceed their targets, and provide a financial or non-financial incentive to encourage high productivity. The primary advantage to employee benefits is motivation. The best kinds of benefits are used to attract talented business leaders to the organization. These leaders then increase performance as whole with awards for increasing efficiency or creating new solutions for business issues, companies can also encourage creativity and change throughout the organization.
Many of the advantages associated with introducing incentive schemes as benefits for sales employees are self-explanatory. In the first instance, once employees are drawing a salary there is frequently little reason for these individuals to work as hard as they could. While sales employees would expect to lose their jobs if they repeatedly failed to meet their targets, many employees coast through, fulfilling the minimum requirements but failing to meet their true potential. However, introducing an incentive scheme can encourage talented but unmotivated individuals to increase their productivity and therefore increase the level of sales being produced for your company.
Incentive schemes can also help to create a climate of healthy competition within your sales force. If you limit the number of employees who will receive remuneration through