Page 77 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 3: Motivating and Compensating the Sales Force

7. Sales Force Benefits: Personal use of a company car and membership to clubs/associations Notes
is also provided to sales people. This helps them to get in touch with a lot of people
connected with business so that the sales could be increased.

Notes Fringe Benefits – A Compendium of Types Available to Sales Personnel in some
Companies
Time Organisation’s dues
Holidays Trade association
Vacations Civic clubs
Sick leave Country clubs
Personal leave Professional association
Sabbaticals
Pregnancy leave Miscellaneous
Automobile
Retirement Programme Use of vacation spot
Social security (mandatory) Parking
Pension plan Dry cleaning and laundry
Profit sharing Lunches (all or part)
Salary reduction plans Secretarial services
Employee stock purchase plan
Insurance and Medical Company-provided housing
Physical examinations Legal services
Medical payments and reimbursements Financial counselling
Hospitalisation insurance Tuition for continuing education
Dental insurance programmes
Disability insurance Financial support for dependents
Life insurance education
Travel insurance Credit unions
Accident insurance Discounts for purchases of company
Worker's compensation (mandatory) products
Unemployment insurance (mandatory) Child care payments
Cancer insurance Matching funds to charities and schools
Psychotherapy expense Company social events
Company sports tournaments
Payment of moving expenses

Source: Developed at a Shirt-sleeve Seminar, Atlanta Chapter, Sales and Marketing Executives International.
Besides these fringe benefits there can be other types of incentives:
1. Profit Sharing: If the company's profit rises then a cash bonus can be given.
2. Stock Purchase Plan: Employees can buy shares of the company at a discounted price.
They can become shareholders of the company. This increases the loyalty of the sales
people towards the company.
3. Credit Union: A company supported credit union to save and borrow as and when desired.

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