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2. Compensation
• Base Pay
• Wages
• Salaries
• Variables Pay
• Bonuses
• Incentives
Benefits
• Health / Medical Insurance
• Life/ disability Insurance
• Paid time off
• Retirement
• Educational assistance
• Work-life Support
Performance & Talent Management
• Performance appraisals
• Goal Setting
• Training
• Human resource development
• Career & succession Planning
Compensation
Breakup
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Total
Rewards
2
3. 01
02
04
03
Straight
Salary
With this type of
structure, you’d pay your
sales people a straight
competitive salary like all
of your other employees,
& nothing else
Commission
Only
Commission only sales
compensation plans are
exactly what they sound
like—you pay your sales
people for the sales they
bring in & nothing else.
There is no guarantee of
income.
Territory
Volume
Territory volume sales
compensation plans are
most often used in team-
based corporate cultures.
They work through the
calculation of territory
volume at the end a
compensation period.
Salary plus
Commission
Most commonly plan
used. They’re structured
in a way that sales
people receive a lower
base salary along with
commission pay that
makes up the majority of
the total compensation
Different
Types Of
Compensation
Plan
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4. Pay-For-Performance Comparison Table
Where It
Would Work
Pay-for-
Performance Concept
Where It
Wouldn’t Work
Most any salary-based company Check out how to
do performance reviews in our guide
Annual Performance Bonus based on
Performance Reviews
Hourly companies like cafes, restaurants, or retail
stores, where turnover is high
Companies where all sales tend to be a similar
amount or have a similar profit margin, like a lead
generation company
Set Dollar Amount
for Each Sale, Appointment Set, etc.
Companies where sales and the profit per sale can
span a wide range; companies where sales are
unstable
Companies where sales and the profit per sale can
span a wide range
Set Percentage Amount for Each
Sale/Client Account
Companies where sales reps do not have the same
opportunities - i.e. certain reps get much larger
accounts than others
Hourly companies like cafes, restaurants, or retail
stores, where turnover is high
Monthly or Weekly Bonus Contests Salary-based companies
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Building A
Compensation Plan
Internal Assessment External Assessment Management
Job
Analysis
Job
Evaluation
Pay
Policy
Market
Analysis
Base
Pay Structure
Pay For
Performance
Communicate
The Plan
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6. Competitors Pay Plan
Job Profile
01 02 03 04
Competitor 1 Your Text Here Your Text Here Your Text Here Your Text Here
Competitor 2 Your Text Here Your Text Here Your Text Here Your Text Here
Competitor 3 Your Text Here Your Text Here Your Text Here Your Text Here
Competitor 4 Your Text Here Your Text Here Your Text Here Your Text Here
Competitor 5 Your Text Here Your Text Here Your Text Here Your Text Here
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7. Performance Based Appraisal Parameters
On-Target
Earnings
$xx, 000 Pay Mix (Base/Variable 65/35
Base Salary $xx,000 Annual Target Incentive $xx,000
Plan Components Qualified Leads Lead Closed
Component
Weight
80% 20%
Plan Mechanic Rate Rate
Cap None None
Performance
Period
Monthly Annual
Payout Frequency Monthly Monthly
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8. Once you have your compensation strategy set, it’s time to make sure
you have the systems in place to successfully implement that strategy.
You will need to set up several components, including state and federal
tax forms and workers compensation coverage
Choose Your
Payroll Software
Below is the list
of possible
payroll software
which can be
used by our
company
Software
01
Software
02
Software
03
Software
04
8
9. Performance Evaluation Parameters
Evaluation Item Service Rating
1. General Quality of Work 5 4 3 2 1
2. Dependability 5 4 3 2 1
3. Job Knowledge 5 4 3 2 1
4. Communication Skills 5 4 3 2 1
5. Personality 5 4 3 2 1
6. Management Ability 5 4 3 2 1
7. Contribution to Group 5 4 3 2 1
8. Productivity 5 4 3 2 1
9. Achievement of Goals 5 4 3 2 1
10. Other: 5 4 3 2 1
05 04 03 02 01
Excellent Very Good Good Fair Poor
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10. Employee
Performance
Summary
What Are Employees Key Strength Areas
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What Are Employees Pain Points
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What Are The Improvement Areas
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10
11. What are the important
accomplishments over the past year?
What are your supervisors key
strengths & weaknesses?
Other concerns you would like
to discuss?
Employee
Feedback
11
12. Coffee
Break
Let’s Start again in
30 Minutes
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12
16. Line Chart
0
10
20
30
40
50
60
70
80
FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08
Inpercentage
In years
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• Product 01 • Product 02
16
17. 0%
10%
20%
30%
40%
50%
60%
2015 2016 2017 2018
• Product 01
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0%
10%
20%
30%
40%
50%
60%
2015 2016 2017 2018
• Product 02
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Column Chart
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18. Column Chart
0.5 0.8 1
1.6 1.9 2 2.4 2.8
3.4
1
1.5
2
2.5
3
3.5
4
5
6
0
2
4
6
8
10
2010 2011 2012 2013 2014 2015 2016 2017 2018
ExpenditureIn($Billions)
Years
• Product 01 • Product 02
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Managing Director
Julie Star
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CEO
Jack Lee
Our Team
20
22. Comparison
37%
68%
42%
87%
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60$
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70$
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80$
Financial
23
25. Timeline
2016
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2017
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2018
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2019
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04
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03
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02
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01
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Target
27. Mind Map
01
0203
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28. Venn
01 02 0403
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