Compare and contrast a typical salesperson’s revenue based compensation plan to a compensation plan based on customer profits. For designing the compensation plan in an organization, there are four elements that are used to described for designing the compensation plan; the first element is the fixed element, that defines the stable income or salary or drawing account for the individual, second element is termed as the variable element, that is served as the incentives or revenues given to the employees, the third element is including the “plus factor”, like paid vacations, life insurance, pensions etc., the last element is describing the reimbursement of the expenses and also the payments that are meant for expenses allowances.

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