Case Method Template
...tives. b. Other departments not involved in sales may have a difficult time feeling like a team if they are not involved in receiving incentive dollars. 2. Do you believe that such incentives as the one described at Bruce Wilcox Insurance can be successfully used at other companies? Not in most small business environments. The amount of success would depend on the nature of the business and the amount of the incentive. Change in sales motivation behavior occurs if the incentive is 20% or more of base salary. Most employees want a steady salary they can rely on. To benefit from this type of an incentive, employees of the ‘A-type personality’ would excel sales of the company for a short while then start their own business and most definitely taking sales. • Sales commission in which the sales representative receives an award, as “Bruce Bucks” is just a novel idea. a. It could be viewed as a team building exercise for other companies that cannot adopt this type of business atmosphere. b. A way to move specific insurance type that is profitable. c. Companies that have a single product line that is new or needs an extra boost to increase sales this incentive would be a positive. • Company from the top down would have to adopt and support the incentive as a long-term endeavor. a. If the company culture is one that has common features and motivated as a whole to act as a team towards the goal. b. Managers and employees believe there ought to be a link between pay and performance. But there still needs to be a quality performance evaluation system based on other work attributes. c. Pay increases, difficulty of the job assignment, how much currently paid or overpaid may cause hard feelings between employees who don’t sell as much, but are valued employees. • Customer satisfaction can never be at risk over winning “Bruce Bucks”. a. The customer may feel there are paying for something that will cost them extra dollars or even a lesser quality of service if swayed by the sales agent who receives these promotional ‘bucks’. b. Sell more without loosing control and allowing the sales staff to change their behavior just to sell more. c. Are we rewarding the wrong things and encouraging employees to do things never intended by the firm? Risk for customers, higher receivables, reverse discrimination, or catastrophes. 2b. Special conditions would have to be in place for a fair perception of this type of commission by all employees. Clear sense of sales purpose Clear communication strategy and progress updates Recognized loss of dictatorial management style Fair compensation for all employees including non-sales Employee involvement in choices of benefits Top-management supported Realization this is more costly to the organization that is performing well, yet able to afford the expense. • Payroll issues and tax reporting on extra compensation. • Additional administrative staff to handle and compile special reports the sales staff is not willing to perform. • The reward system should reflect the culture. • Account for unique locations. 3. What issues do you see in this case for: a. The Wilcox sales people: • Resentment from other staff departments. • High turnover of average employees. • Need to be the market leader who sets the standard or other companies in the same field may set up similar compensation packages that far supersede the Wilcox example. b. Issues of Wilcox spouses and family members: • Members may hold a higher favor for telecommuting, stock options, health care, spot bonuses, or profit sharing. • Single employees or gay employees needs are often over looked in family based programs. • Most companies aim for a h...