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Preface: Regardless of the period, region, market conditions, or products, salespeople are the foundation of sales work. Therefore, how to motivate sales staff's enthusiasm while ensuring the strategic intentions of senior leadership are implemented has become an extremely important issue for manufacturers and distributors to solve. Among the many ways to solve this problem, adjusting the salary structure of sales staff is the most direct and effective method. Thus, this article will provide a detailed explanation of how to build a salary system for sales staff, hoping to be helpful to leaders of liquor companies and distributor friends.

To clarify the salary system, three aspects must be explained.

  1. Components of the salary system: Simply put, what constitutes the income of sales staff, i.e., "what money is paid."
  2. Target elements of the salary system: Factors that affect the salary level of sales staff, or more directly, "why money is paid."
  3. The method of linking salary components with target elements: That is, how a certain part of the salesperson's salary fluctuates due to certain factors, such as increasing fixed amounts, deducting by proportion, multiplying by a coefficient, etc., simply put, "how to pay money."

I. Components of the Salary System: Generally, the salary system for sales personnel is divided into the following eight aspects, among which basic salary and sales commission are the most widely used, while other items are applied differently according to the actual situation of each manufacturer and distributor.

  1. Basic salary: To ensure the basic living needs of sales personnel.
  2. Sales commission: To reward the sales performance of sales personnel.
  3. Performance appraisal salary: To extract key indicators to assess the work process and results of sales personnel.
  4. Seniority pay: To reward the loyalty of sales personnel.
  5. Position allowance: Subsidies for personnel in positions with special work needs.
  6. Employee benefits: Insurance, leave, and other hidden benefits, which are important factors in enhancing employees' sense of belonging and maintaining stability.
  7. Special bonuses: Special awards for special events or special contributions.
  8. Year-end bonus: Year-end reward for sales personnel, which is an overall review and evaluation of the employee's work throughout the year.

II. Objectives of Building the Salary System

  1. Compensation for job responsibilities
  2. Feedback and rewards/penalties for work results and effectiveness
    1. Sales volume: Actual sales volume of the salesperson.
    2. Overall task completion: The degree to which the salesperson completes tasks.
    3. Proportion of leading product sales: The proportion of leading product sales in the salesperson's sales results.
    4. Expense usage: The quantity, quality, and effectiveness of expense usage.
    5. Profit level: The amount of profit the employee contributes to the company.
    6. Team management results: The performance of management functions by management-level employees.
    7. Market/customer feedback: Customer satisfaction feedback.
  3. Work process control:
    1. Work process compliance: The degree to which key indicators are met during the work process.
    2. Subjective judgment factors: Subjective judgments on the enthusiasm, responsibility, etc., of sales personnel.
  4. Team stability
    1. Loyalty
    2. Fairness
    3. Team spirit
  5. Special contributions/accident rewards and penalties: Certain special contributions or losses caused.

III. Methods of Linking Relevant Elements with Salary

  1. Linear method: For each additional XX, the salary increases by X yuan. A typical example is piece-rate commission: for each additional item sold, an additional XX yuan commission is earned; seniority pay: for each additional year of service, the monthly salary increases by XX yuan. For sales personnel, this is a stable income, relatively fair and reasonable, but the incentive effect is relatively small, and the company's strategic direction is not clear enough.
  2. Step method: Similar to the linear method, but introduces a step reward form, i.e., when a work result reaches XX-XX (value), the salary is paid according to the XX standard. A typical example is task commission: the commission rate within the task is X%, and the commission rate for the excess part is X%. This method sets a goal for sales personnel, which indirectly exerts a certain pressure, but the degree of control tests the wisdom of leaders. Appropriate pressure is beneficial, but too much or too little pressure may cause adverse reactions in the team.
  3. Coefficient method: When one work result reaches XX or above, the coefficient is X; when another work result reaches YY, the salary base is Y; the final salary result is X×Y. A typical example: The task completion rate of sales personnel (e.g., 150%) is the commission coefficient; if the task is not completed, the coefficient is 50%, with a cap of 200%; the piece-rate commission of sales personnel (e.g., 2000 yuan) is the base; the final commission paid is the commission coefficient × base (150%×2000=3000 yuan). Of course, the coefficient method itself is a comprehensive method, where the coefficient and base can be set in a linear or step manner. For sales personnel, the coefficient method is a double stimulus: they must complete basic sales to obtain a higher commission base, and also exceed the target to obtain a higher coefficient. The two are multiplied to calculate the final commission, which can make sales personnel work desperately. However, this method is a powerful tool to motivate sales personnel, but if operated or monitored improperly, it can easily cause imbalance among sales personnel, leading to dissatisfaction, which is harmful to team morale and stability.

Common Methods for Building a Salary System Table In summary, the salary system is actually a calculation system where salary components and related elements fluctuate through special linking methods. When we specifically formulate a salary system, we follow the following steps: I. Determine the company's main task at the current stage. Is it sales volume first or market stability first? Is it to ensure payment collection or reduce costs? Is it to promote new products or maintain old products? These require leaders to have a clear understanding and judgment of the market and the company's development stage. II. Based on the company's development goals, clarify the work goals that sales personnel need to achieve. III. Based on actual conditions, consider which core links need to be incentivized to achieve these work goals, and which parts of the salary system are suitable for incentives. IV. Select the salary components for sales personnel. Generally, basic salary, commission, and employee benefits are essential; performance appraisal, seniority pay, and year-end bonus are added based on the company's strategic goals; the significance of subsidies lies not in the amount but in formal fairness; and the rules for special bonuses reflect the company's values. V. Considering the team situation, company goals, and strength, determine the linking method between salary and goals. The salary system is a systematic plan that must consider factors such as the company and market conditions, development strategic goals, team business level, and internal organizational ecology. However, I believe that as long as one element is firmly grasped, there will be no directional problems, and that is to grasp the work direction and goals that sales personnel need to complete at this stage. As long as you clearly think about the work goals of grassroots sales personnel, grasp the degree, and come up with clever details, the entire salary system will surely radiate new vitality.

New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focused on how the FMCG industry channels will transform under the trend of Internet+ transformation

Conference Agenda 08:00-09:00 Registration 09:00-09:05 Host opening 09:05-09:35 2016 China FMCG Industry Trend Analysis Report - Zhao Bo 09:35-10:05 FMCG Enterprise Transformation Strategy and Path - Liu Chunxiong 10:05-10:35 Opportunities and Challenges Brought by FMCG Channel Reform - Liu Zhao, CEO of Waiqin 365 10:35-11:05 Reconstructing Distribution Channel System, Promoting Urban Retail Upgrade - Tian Yuan, General Manager of Alibaba Retail Link Backend 11:05-11:25 Channel Efficiency in the Internet Era - Fu Xiaoyun, Vice President of Benlai Holding 11:25-12:00 Roundtable Forum - Brand Transformation: Improvement vs. Reconstruction? Guests: Liu Zhao, Liu Chunxiong, Fang Gang, Chen Feng, Shi Zhengchuan, Deng Xia 12:00-13:30 Lunch 13:30-13:50 Distributor Transformation: Urban Distribution Trends - Wang Qi, CEO of Weijie City Distribution 13:50-14:20 Roundtable Forum - Why Distributors Should Do Logistics in Transformation Guests: Zhao Bo, Wang Qi, Liu Zhongmin, Tang Guangliang, Wang Cheng, Sheng Yan 14:20-14:40 How FMCG Enterprises Leverage the Internet to Take Off - Wang Hui, E-commerce Operations Director of Xijiu 14:40-15:00 Detailed Explanation of Zhongshang Huimin's "One Machine, Two Wings" Strategy - Su Xiaoxin, Vice President of Zhongshang Huimin 15:00-15:20 Category Value and B2B E-commerce Development Strategy - Wang Chaocheng, CEO of Yijiupi 15:20-15:40 Supply Chain Finance as a Lubricant for B2B to Drive Traditional Business - Chen Xian, CEO of 51 Order 15:40-16:00 Zhanghe Cloud Factory Helps Upgrade FMCG Supply Chain - Yang Lixiang, CEO of Zhanghe Tianxia 16:00-16:30 Integrating Small and Micro Retail, Reconstructing Business Ecology - Miao Dong, Vice President of Quanshi 16:30-16:50 B2B Investment Principles and Thinking - Zhao Mingwei, Vice President of Junlian Capital 17:00-17:30 Roundtable Forum - Who is the King of FMCG B2B Models? Guests: Fu Xiaoyun, Zhuang Jianzhong, Jiang Tao, Zeng Weiqin 17:30-19:30 Dinner For manufacturers and distributors who want to transform, this grand event is not to be missed. Interested friends can long press the QR code below or click "Read Original" to register.

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