SMYDB Computer Company: Workers Compensation

Subject: Employee Management
Pages: 2
Words: 695
Reading time:
4 min
Study level: Master


The increasing level of competition ranging from market coverage to acquiring skilled personnel, is one of the critical factors the new companies entering the industry to offer commodities have to consider. The labor factor calls for special concern when it comes to how the upcoming firm should set the compensation rate amongst the workers of the company, such as salespersons. SMYDB Computer Company is still fresh in the market; therefore, the products have not captured a position in the buyers’ minds. Thus, the managers should consider having strong, skillful, and reliable salespeople who can manipulate the market and build a proper image of the firm for better revenue generation (Banerjee & Bhardwaj, 2019). To inspire the sales representative, the company has to formulate attractive motivation approaches that would sufficiently compensate them for the work done and encourage their morale as well.

Sales location Los Angeles -NORAM

Running a market test will definitely require talented sales workers who can give the best service and lure customers to come and buy again from the store. In this case, the appropriate compensation should be more of a commission depending on the number of sales the employee made during the stipulated time. In addition, the firm could also provide some incentives such as traveling and food allowance to promote the sales activity. The workhorse demand is high in Loss Angeles, meaning for the company to retain the workers, it has to offer a reasonable rate for commission and adequate travel compensation.

After the market test, the SMYDB company management team has to use a compensation mix for the sales representatives to maintain their services. This will involve using a base salary of about 55% and the rest to come as commission from sales above the set limit(Bhargava & Rubel 2019). The commission rate will give the business a competitive advantage over other companies as most sales agents will strive to beat the limit for sales to earn more money. Several award programs are to be induced to promote competition amongst the representatives to better their performance in the market, as shown in Figure 1.

Sales Representative Compensation Chart
Figure 1. Sales Representative Compensation Chart

Webcenter Location Paris –EUROPE

This group is more of coordinating staff handling technical areas; therefore requires highly skilled employees with management ability and proper decision-making. The compensation package should be good enough to secure their services for the long term. As shown in Figure 2, the persons should be entitled to a basic salary plus other benefits such as travel, office breakfast, health coverage, and a long-term pension program (Freitas et al., 2017). Paying slightly above the industry rate would ensure more commitment and effective performance to produce good results for the firm. The company should also factor in overtime if some workers could work until late hours. In the long run, the company should determine a salary scale based on job description and performance, accompanied by many bonuses. This will enable the firm to secure and employ the right individuals to enhance the organization’s performance. The experience a worker has should improve the incentive packages they carry home. Proper compensation will allow the company to maintain and access productive human resources.

Webcenter Compensation Chart
Figure 2. Webcenter Compensation Chart

Production Location Sao Paulo-LATAM

Due to limited travel expenses, the firm should offer a low range of traveler benefits and average health incentives. The low demand for workers makes it easier for the SMYDB Computer firm to get a large labor force easily (Notowidigdo, 2020). For proper service delivery, the workers should be subjected to other benefits that would make them more productive despite the reduced compensation rate, as illustrated in Figure 3.

As the SMYDB grows and increases in size, many production processes will be taking place. This will require the firm to have experts with the experience to manage the activities. To achieve that, the industry will have to offer better benefit packages and salary range depending on the level of proficiency of an employee. The incentives and the good pay will grant the firm a competitive advantage for workers in the market hence enabling it to retain and get new employees as well.

Production Compensation Chart
Figure 3. Production Compensation Chart


Banerjee, S., & Bhardwaj, P. (2019). Aligning marketing and sales in multi-channel marketing: Compensation design for online lead generation and offline sales conversion. Journal of Business Research, 105, 293-305.

Bhargava, H. K., & Rubel, O. (2019). Salesforce compensation design for two-sided market platforms. Journal of Marketing Research, 56(4), 666-678.

Freitas, Â., Correia, A., Braga, A., & Braga, V. (2017). Financial Incentives for Employees to Develop new Ideas and Their Importance to Stimulate Creativity in Portuguese Firms. In 12th European Conference on Innovation and Entrepreneurship ECIE 2017 (p. 248).

Notowidigdo, M. J. (2020). The incidence of local labor demand shocks. Journal of Labor Economics, 38(3), 687-725.