New Compensation System for Personnel

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Table of Contents

Discussion
Conclusion
References

In this case, the company introduced a new gadget, the M2, that was aimed to partially replace its previous version, the M1. However, sales of this device did not reach the expected level. There are several aspects related to the issue. However, the problem might be resolved by means of a new compensation system for personnel. The main goal of this paper is to discuss solutions that might improve the situation.

Discussion

In order to develop solutions to the described problem, it is necessary to find the underlying reasons that led to such a situation. The personnel explained that despite the new device having additional features, clients are not satisfied with them. They said that it is hard to operate. An additional problem is that it requires much time to describe all its functions to clients. Therefore, during the pre-rollout research, specialists did not take into consideration this aspect and focused mostly on the new features. That is why the device received great reviews. Therefore, the problem should be addressed from different angles. The designers should run through the device’s features in order to assess their effectiveness. Such analysis might help to identify less significant characteristics that can be modified.

However, the main approach is to develop a compensation system for rewarding the personnel who render the service (“Compensation from an HR perspective,” 2014). Such a system should include several elements. First, salespersons might receive additional bonuses for developing a more effective presentation strategy (“Factors affecting compensation,” n.d). It will motivate them to examine the new device, focusing on the most important features, which should be the main points during the presentation of the M2 to potential customers. Also, it will allow them to detect less significant functions that should be omitted during selling processes. Therefore, this step will help to identify the strength and weaknesses of the device. These factors can drastically increase sales (Strauss, 2016). Second, salespeople should be rewarded for selling the M2 to customers who come for the M1.

This strategy will allow highlighting the most significant differences between the two devices. Comparison is very important to improve sales of a new product. Moreover, it will help the personnel to fully comprehend the main advantages of the M2. They will be able to use such advantages to attract new customers (“What is employee compensation,” n.d.). Third, a special program might be implemented to increase sales of the M2. For example, owners of the M1 can be offered to exchange their old device for a new one. Such a move might be very effective in this situation (Mayhew, 2018). People who used the M1 are already loyal to the brand. That is why they also should be considered potential customers. They might need an upgrade version of the device, though it is necessary to pay to them particular attention. Salespersons should demonstrate the main advantages of the M2 to this group as these people are more sensitive to such information. However, it is necessary to motivate the personnel to work more closely with them (“Employee benefits and compensation,” n.d.). Therefore, the developed compensation system has to include bonuses for implementing this strategy.

Conclusion

In conclusion, the above-discussed solutions might be very effective in improving this situation. This problem was caused by several issues each of which should be addressed. Therefore, it is necessary to work on technical, organizational, and marketing aspects. However, the company should also focus on the modification and optimization of the device.