In today’s economy, keeping the morale of the sales force in a high gear is vital if a company is to achieve profitability. One of the factors that boost the morale and productivity of the sales force is a reward program that recognizes and addresses their needs. It is in the company`s best interest to keep the sales force motivated for higher sales revenue and elevated levels of financial growth. To assist in understanding the impact and role played by reward programs, General Motor`s compensation plan will be used as a guide in creating an effective workforce compensation program (Hay Group., 2001).
An effective compensation program needs to incorporate the aspect of fairness .This means recognizing each employee`s worth and value contribution to the ultimate success of the company. The reward program needs to be impartial to all employees involved so that it can gain unfailing support from every member of the sales team. An unfair program will create conflict and division amongst employees and cause resentment and discontent amongst those who feel sidelined by the program (Clow & Baack, 2012). It will hinder the smooth running of operations as employees get involved in a battle to counter each other’s efforts thus leading to reduced levels of productivity.
The vision and mission of the company should also be considered when hatching a reward program. It is only by aligning it to the core values of the company that it will attain sustainability. The rewards program will be a reflection of the company’s goals and objectives thus utmost care should be taken so that the intended image is reflected to all interested stakeholders. If the program is not aligned to the company`s goals then it will be working against the very existence of that company and will produce undesirable effects.
The reward program should also receive the full backing of the management team