The American automotive industry has seen its share of ups and downs over the last decade. Recent sales figures have shown that the market is making positive ground to catch up with the negative figures it saw for years, and certain factors in the consumer-side have helped push these good signs even further along. The only issue now, however, is how sales incentive compensation can assist these positive indicators in reaching the next level.
An atmosphere of awards
According to Auto News Online, a number of respected auto industry organizations recently weighed in with their monthly reports. The total number of vehicles sold this August hit 15.5 million, a slight decline since June, but J. D. Power and LMC Automotive said that sales will likely swing back in the right direction as the end of the year approaches. The source added that there are even tentative projections that the industry will hit 16 million again for the first time since 2007.
Despite sales incentive compensation being on the lower side for the year and even in the long-term, there are plenty of positive factors at work helping bring in more business and keeping personnel engaged. These elements include available credit, the need for replacement vehicles and a constantly increasing number and variety of new cars. All of these together make it easy and appealing to people to go out and buy or lease a vehicle, providing employees with plenty of opportunities to earn more incentives.
Offering easier success
Another factor that organizations in the auto industry may want to consider to keep people happy and money rolling in is to ensure that sales incentive compensation plans are adjusted properly for the market. As the Society for Human Resource Management stated, it's best especially in tough economic climates to create plans that offer easily obtainable incentives, even if these are just basic rewards. These base metrics improve the likelihood that all individuals will ascribe to current business and award models, thereby creating more positive feedback and heightened engagement.
Companies of all kinds must be sure that their compensation plans are in line with what individuals want and keep their staff members' satisfaction a top consideration in creating future award options. Even in tough markets like the auto industry, offering the right kinds of compensation help businesses establish better work conditions and environments wherein people still feel motivated to work.