Problem 1.

How to give a plan of sales to the trading agent, who actively looks for new Clients, when not only the number of Clients is important but also their “significance”, which is not easy to formalize?

Problem 2.

How to proceed in stimulating agents who are looking for new customers, if the first transaction is not indicative? Large customers may well make small trial orders…

Problem 3.

What should be done if we found only a few Clients for the month and on top of that, any Client can suddenly pass a large order (it would not be proper to include that in our plan)? That is, to wrongly set up the target income twice or even 20 times(!) is very easy in such a case.

Problem 4.

What is to be done in those situations when it is important that the agent not only aims at getting a big revenue from a newly found Client but also tries to sign a contract for more favorable terms for the company on deferred payment.

We shall collect 4 challenges in one salary...

It is often said that: “I shall pay on end result!.." And just as often we get puzzled with: “Yes, but there are many of them (the results)…” What should we do?

Consider each one? How to “tie” each to one salary then. Outline the “main rating” from several? Which sign should be put between them?

And later. When there are the result criteria of several individuals, how shall we not allow each one to “dissolve” in this “general evaluation” and how shall we NOT “pick” one instead of the other? How shall we not let the opportunity pass, when the employee goes on “retirement” when a big deal is “struck”?

What shall force the employee to constantly “keep” a good level? And what shall be done when the employee “stopped short”, and he feels that the punishment is too severe?

This is what Alevtina Kavtreva and Ksenia Tkalich will discuss about.

The question to Ksenia Tkalich: It is necessary for us to have a report on the number of sales and not only on turnover when evaluating efficiency. However the units of measurement of the goods are various: some goods are sold in running meters, others in squared-meters, others still are weighed in grams/kilograms, others are calculated in units etc.

That is why, it is not a trivial task to define in which units to calculate the number of sales. We are to have a report of the sales in receipts, but You said that we should not do as such. Please explain, why?

Just imagine that You have a staff of preachers and You pay for their work. What do You suppose will be the formula for their salary? The task is not simple, but in no way whatsoever is any religious organization completely solved.

Of course, You are not sustaining a staff of preachers. You have secretaries, agents, waiters, vendors, etc., but the "salary" problem of Your company does not get simpler. In fact, it gets even more complex.

However, to your amazement, a lot of "salary" situations help to reveal the analogy with the material stimulation of preachers. Alevtina Kavtreva and Ksenia Tkalich are having a discussion about the matter.

The general director sets a plan of sales for us every month based on the principle of "what was achieved". It so happens that the more my subordinates and I work, the higher the plan is set and as a result, our bonuses are reduced.

This is not whining. Objectively, the plan was constantly achieved for these months…

For each enterprise, the minimum efficiency has its level and is defined by the technology of work, but even for the most "rubbish" technology, it should not be less than 70%. In such a case where the employee does not reach the minimum efficiency systematically, it is recommended to make sure – are the standards too high. If they are not too high, it is better to fire the employee, since the stalling at the company in some cases can be well felt.