I work in sales and have seen a new trend lately. With so many jobs being cut, companies are caught in a quandary: How to raise revenue after cutting sales and marketing staffs.
One way is to keep sales people, but on a commission/sales only role. For instance, a sales person has a base salary, insurance and HR cost to the company. The company depends upon the sales person to sell products and services which will cover those costs.. eventually.
However, some companies are cutting the employee and making them an agent or reseller. The company reduces their monthly fixed cost and the employee earns a higher commission (hopefully) for sales.
As a short term solution, this may work for both parties, but it will not work long term. As companies cut long time sales persons and teams, they are compelled to recruit new sales persons with higher and more demanding quotas. So available sales people, good ones, are constantly being recruited and headhunted. I know that is what I have seen in the market this month.
The agent model will probably continue for the time being. The monthly costs of employees is at the breaking point for too many companies.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment