Case 17.1 - Case 17.1 Baxter Surgical Supplies Incorporated...

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Case 17.1 Baxter Surgical Supplies Incorporated 1. The advantage of having a straight salary is knowing that you will get paid no matter what. You can sell as much or as little, and put in as many or as little hours as possible, and you will still get paid. This disadvantage of having a straight salary is knowing that you could be the best sales person ever, and not make any additional income for those sales that you worked your butt off for. Another disadvantage is when you have to work extra hours to get those extra sales, and not be compensated for it. This plan can provide a person with a sense of security knowing that they have a regular income, but at the same time there is no room for monetary incentive. 2. I think the compensation plan is causing a problem. BSSI has a high turnover rate for people working less than 18 months. The sales people would get the proper training from BSSI, and then run off to the competitors. The competitors would pay their sales people 100 percent commission. I don’t even think it has anything to do with the lack of
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This note was uploaded on 11/02/2011 for the course ECONOMY G123/EC100 taught by Professor Melissa during the Spring '10 term at Rasmussen College.

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