Reward references of salespeople : How do financial and non-financial compensation rate
Abstract
Today, market economy is rapidly developed and expanded all over the world in general as well as in Vietnam in particular. Making profits for organization is challenging task for all staffs in firm, and especially is an important task for sales-forces. Sales management people are those who decide whether or not, the organization continues to sustain its development in the market. The challenge issue for organization is that how to attract and retain their salespeople in order to help the firm develop as well as compete with other companies. Most organizations nowadays are facing with increasing turnover rate.
The reason is easy to realize is that people do not satisfy with current income and compensation package they receive at current firm, they want to find other environment
to meet their needs. Especially with sales-forces, it is very difficult for companies to attract and retain the best salespeople because they play significant roles in remain the existence of firm. That the challenging task is organization has to design an attractive compensation packages for sales-forces so that they can stay loyal to company for long term. This study investigates how financial rewards and non-financial rewards encourage
`and motivate sales performance and satisfaction, and which type of reward is more preferable by salespeople.
The overall findings present four factors, which mostly effect to sales-forces performance, pay rises, fixed salary plus commission, recognition and promotion, and training program. The conceptual framework is modified and propositions will be
presented.