Solved: Ilham Holiday sells vacation membership programmes whereby people can pay a membership fee and in
Ilham Holiday sells vacation membership programmes whereby people can pay a membership fee and in return take so many holidays per year in resorts owned by the company. The salespeople receive a basic salary equivalent to the amount which would be paid to a fresh university graduate. For each sale they make, they receive a commission and on top of this, they get annual bonuses based on company profitability. Special contests and promotions are organized to encourage workers to put in extra effort. Overseas trips to Europe and America are the prizes for those who win these competitions. Salespeople more likely to receive financial incentives than other groups of worker. Explain your reasons.
Expert Answer
It is very much true that salespeople are more likely to earn incentives most of the time when compared to other functions. The reason being, they are the revenue earners for the company and they handle the most toughest job. Sales is a kind of role which needs a lot of motivation. There are days when people get so demotivated that they go into depression as well. In order to avoid these circumstances, companies offer additional incentives to salespeople to keep them going.
