Role of Fair Reward, Incentives and Remuneration System for Motivating Sales People of Banking, Financial Services and Insurance (BFSI) Sector

Author Name(s): Dr. Parihar Suresh Dahake
Author Email: dahakeps@rknec.edu

Abstract

Purpose: The paper intends to study the factors and essentials of fair incentive, rewards system which drives Banking and Finance salespeople to be productive, and also understand are they generate sales for business or not. Sales jobs, especially for financial products is extremely competitive for employees those who works as a salesman, A smart sales managers can use to his skills, ability, and knowledge for getting an advantage in increasing sales income and profit. Methodology: The data was collected through an administered questionnaire in direction to get the first-hand information on perception. ANOVA method used to test the significance & hypothesis testing. The research though covered people from different areas; the field of study was limited to Nagpur city only. Practical Implications: Nagpur city has included in the first list of emerging smart cities; it is a fast growing city & holds significance in direction of growth potential of investment and banking in central India. Findings: Encouragement by rewards and incentive system play key role to search new business opportunities for the growth of the company, and rewarding the salesperson and sales executive’s people who do their best job of bringing new customers from the saturated market. It is also highlighted the viability of reward and incentive system to motivate sales people who work in a commission based environment and putting effort into their work for reaching their sales target and goal. Originality: This paper presents the actual researched picture of Banking, Financial Services and Insurance (BFSI) Sector sales person’s viewpoint in the Nagpur city. It shows that good and sound remuneration/compensation plan is one of the effort to meet with the expectation and aspiration of sales force on one hand, and overall objectives of management on the other. Keeping Salesforce, Sales team, motivated will be quite easier when business facing good time and selling of products are flowing freely in the market, but when business hits a rough patch it can be a herculean task to keep their top salespersons and performers on board.

Keywords Incentive, Sales, Reward, Remuneration, Motivation, Salesman

Introduction

Motivation is the psychological set of forces influencing the behaviour of an individual. It involves a complex combination of individual needs, and motivation is having an ability to influence the sales-force in such a direction to get them to do what their performance and expect them to do. To motivate a sales force a sales manager expected to know the needs, emotions, aspirations, and expectations of his salesman’s. Hence good remunerations and compensation plan is one of the strategy to fulfil the expectations and aspirations of the salesforce. Sales is implemented in all category and it includes the salespeople to be engaged in direct selling, personal or face-to-face selling and via telephone calling. An Account manager is accountable and responsible for a number of customers and staff providing for technical support such as sales people and sales-force. The diverse nature of sales means that compensation packages for sales staff vary greatly, with a number of organizational factors influencing both the type and level of rewards on offer. The products and services being sold, as well as the types of customers, will impact on how sales personnel are remunerated.

 

Conclusion

An effective remuneration and compensation plan will help to recruit, retain, and motivate employees. Establishing competitive pay scale and its range will help to attract efficient and high calibre employees appraising their performance and explaining its attachment towards pay, which will encourage his performance. Providing goals will keep employees interested in and enthusiastic about their present assignments. Sales force requires motivation as individuals and as a group members. As individuals they are target for personalized motivational efforts by theirs supervisors, selling financial products and services can be fraught with uncertainty and risks for both the organization and the sales representative. As a result, the most appropriate sales force compensation package is one that combines sufficient incentives to ensure staff are prepared to shoulder some of the risk with some level of guaranteed payment so staff do not feel all their efforts are wasted should a sale fail to materialize. A mix of benefits and perks can also be used to remunerate employees. By linking rewards to employee performance can increase employee motivation and achieve winning results.

 

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