Biomed Case Study

I would propose to restructure the compensation plan, including only the guaranteed base salary and bonus, giving the most weight to the salary, followed by the bonus. Biomed should start by giving their sales employees enough base salary so that they do not have to worry about the money they are making but rather focusing on selling the products to the desired customers. Chiemchanya may look around to the other competitors in his industry that are operating under the same compensation as he will be and look to see what kind of base salary those employees are receiving.
Since the company has restructured their marketing plan, they sales employees will not be selling as many products as they have before. Knowing this fact, it is unfair for
There would be no difference at Biomed. Ponlerd Chiemchanya needs to show his employees that a change is necessary and that it will actual benefit them compensation wise in the long run. He needs to ensure that this new compensation plan will be equal if not more compensation as the old compensation plan was under the old marketing strategy. This just means that Chiemchanya should not be taking compensation from his employees through this switch.
The key would be to start slow. Since this change is new for the company as well, it will be hard to forecast the market and the amount of sales they would be making. Chiemchanya should create some goals and a compensation structure that goes along with those goals and let it run through a quarter. If those changes he has made is equal to the old compensation the employees were recieving, then that is what he should start. He can implement it to his employees, watching very carefully for the feedback. There always is the ability to make small changes to fine-tune the compensation package, as long as the employees are not taking a financial hit from this change. Chiemchanya should expect to go back and redistribute the percentage of base salary/quarterly bonus as well as the sales goals as time goes on, but starting conservative will help ensure that no one takes a financial hit from this
This new strategy requires the employees to actually make the sales and negotiate with customers rather than just filling out forms for sales they make. It requires a lot more skill and for the employees to be actual “sales” employees. In order to make sure that they can do this, Chiemchanya needs to set up training for all of his employees. There they can learn the skills necessary to do their jobs. He can motivate his employees to go through this training by compensating them for it as well as communicating to them that when they go through training they will be better sales employees in the end, which will help them hit their goals and receive their bonuses. Along with that, he should hold information seminars to direct the sales employees on the new direction Biomed is headed towards as well as releasing new job descriptions so the employees can fully understand what is expected of them. The job description may have stayed the same but it is important for the employees to know they are doing the right