Creating a compensation or bonus plan

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Creating a compensation or bonus plan that is "fair" and "balanced" is necessary to avoid unfair pay practices that could be deemed discriminatory. What is a common denominator that all sales personnel could be evaluated on whether or not they are new employees?

What are thoughts concerning a bonus structure that specifically addressed how much a salesperson generates in revenue each month?

Would this be a fair playing field for all staff? For example (and this is very simplistic):

Sales Generated By Month: Bonus Payout:

$0 - $1,000 $0.00 - expectation.
$1,001 - $2,500 $200.00
$2,501 - $5,000 $400.00
$5,000 - $7,500 $650.00

How would the above type scenario level the playing field for all sales staff members? Would this type of plan be motivating to everyone..why or why not?

Reference no: EM132887644

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