******** marketing and sales employees hold key roles at the company because they target customers and plan wa

Question

******** marketing and sales employees hold key roles at the company because they target customers and plan ways to engage them. Yet marketing and sales-related expenses have gone over budget in the last month. Suggest either a variable-pay program or a skill-based pay program which could serve to reward these employees, and will also reduce costs

Answer 1

do your own homework

Answer 2

Compensation is often based on MU%, gross profit margin.
Based on that, a variable commission can be calculated.
Increased sales alone are not always the cure if MU% is not maintained.
Commission can be calculated from a minimum MU%. The lower MU, less comission, the higher MU, incremantal increased comissions.
MU and volumne could be considered together.

EX: If the break even expenses are say, 40%, you could pay a very base wage. All sales above 40%, would earn incremental increases in comission.
You could even pay no comission under 40% MU, If straight commission is the rule.
This is incentive to increase MU%, and increase sales volumne.

You may have heard the guy who sold and sold goods, at a loss.
When questioned he replied,
"Don't worry. I'll make it up on volumne".