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InterClean Sales Team’s Compensation Plan


The most important motivational factor in any workplace is the monetary rewards offered to the employee. Wages and salaries are the most commonly applied remuneration methods at the workplace. However the nature of sales work has prompted the development of other channels of compensation which have proven to be more effective in motivating workers than the fixed wages and salaries. This paper discusses the appropriate compensation plan for a sales team from InterClean a new company formed through a merger between EnviroTech and InterClean. EnviroTech dealt with Industrial cleaning services while InterClean dealt with sale of cleaning products. A smaller more effective sales team comprising of five highly qualified employees was selected from the pool of staff working in the two firms.

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Method of approach

In achieving the high target sales volumes developed by the new firm, the sales staff will be required to apply individual energies to the best possible levels. Again, intensive support and teamwork will be required mainly due to the fact that the team comprises of experts in the sale of either cleaning products or cleaning services. This being the case, a great deal of consultation among the team members is expected.

Bearing the above factors in mind, a plan that encourages very high individual performance as well as shared performances is the most appropriate. A collaborative model is thus applicable. It views the sales team members as equals as far as the component of team reward is concerned. It also supports individual efforts incorporating a scheme for rewarding personal efforts. A shared matrix will be developed to determine what portion of the sales volume will be attributed to group reward system and what portion will be attributed to the individuals in the group (Cichelli, 2003, p102).

Structure of remuneration

The three basic compensation packages to be implemented for the sales team workforce is a basic salary, commission and sales bonuses. The basic salary will be based on the weight of qualification as well as the experience the staff member has. In this regard, every member will receive different basic pay. The older more experienced and highly qualified team members such as Jim Martins and Tom Gonzalez will receive more than the younger less experienced members like Mark Pearce (Luskey, 2009, Par 5).

Commissions on the sale volume generated will be paid. A 3% of sale revenue is recommended though intensive consultations with the finance department and the overall management will have to be undertaken before approval. The commission will then be split into two. The first portion will be attributed to the entire sales team on equal basis in line with the collaborative model. The second portion will be apportioned to the team members in accordance with their registered ability to generate sales for both the cleaning products as well as industrial cleaning services. Commissions will be paid out on a monthly basis.

Bonuses will be availed to any team member who reaches a specific goal. They will be calculated semi-annually. For a staff member with experience in selling cleaning products, the requirements for achievement of the bonus will be lower in the sale of cleaning services and vice versa. This is in order to take care of differences in expertise and encourage everyone to develop even greater interest in the sale of the products they are less experienced in (Kehrer, 2009, Par 4).


In developing the compensation plan, extensive consultations incorporating all interested parties such as the staff members, finance department and the management will be conducted to ensure the sustainability and acceptability. The combination of all these dynamics in the compensation plan will see the development of a motivated workforce with low turnover rates.

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Cichelli, D., (2003). Compensating the Sales Force: A Practical Guide to Designing Winning Sales. Web.

Kehrer, D., (2009). Guide to Sales Compensation Plans that Work. &, Web.

Luskey, B., (2009). Structuring a Sales Compensation Plan. Web.

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