Author: Lizzy Wolff
The U.S. economy is slowly recovering. Ties to the global market and continued financial problems in Europe have made it difficult for domestic companies to see growth, but the gross domestic product increased at its fastest rate of the year during the third quarter.
Bloomberg Businessweek reports that the GDP grew at an annual rate of 2.9 percent between July and September, beating expectations. The improving conditions in the housing market and increased lending from banking institutions are restoring confidence to the market. Consumers are expected to spend more money this holiday season than the last few years encouraging companies to bolster their spending in an effort to capture more revenue.
All of the additional activity is altering the relationship between employees and employers, according to Workforce. As the economy improves, workers are expecting benefits cut during lean times to return. This could force companies to alter their sales compensation plans as part of efforts to retain key personnel.
Workforce stated that as the unemployment rate is falling it is reducing competition for jobs. Fewer people out of work, means fewer applicants removing the bargaining power companies have. To attract top sales talent, businesses will soon need to provide more generous commission structures, bonuses and other perks.
"We all know small companies are struggling," Bob Benish, executive director for the Chicago-based defined contribution industry group told the source. "Those [companies] that have made it through the recession are using benefits to demonstrate their commitment to their employees."
One of the main benefits making a return to the workplace is employee matching to 401Ks and other retirement plans. Future savings is a big draw in light of the fiscal challenges facing the federal government and social security. Companies that offer matching contributions in combination with other benefits may be able to retain their top salesmen, even without significant alterations to compensation structures.
Most businesses depend on their sales department to drive revenue growth. The department's ability to nurture potential leads can determine the overall health of the company. As the economy recovers, there will be more opportunities for skilled sales personnel to make additional income. Developing compensation solutions that reward the cultivation of new clients could benefit both the organization and the employee. By gaining additional pay, the employee is inclined to work harder at closing deals generating more revenue for the company.