Every few months i see new notifications of rise in minimum wages across states in India. While this does hit businesses, the hardest it hits is the section of sales force - the feet on street.
Sales force thrives on incentives, within the ambit of incremental revenues and affordability. Just imagine a sales executive with base salary of INR 10 k per month and the opportunity to earn incentives upto 60% of the base pay...so another -INR 6k per month.
Now you get a notification that the minimum wage for the particular category has been increase from 10k to 13k. Fine, you implement that. What happens of the sales incentive potential? Are businesses growing so fast? No. So what then happens is that the potential is to be either reduced from INR 6k to INR 3k or reduce the sales force to keep similar incentive earning potential as earlier. Decide where to jump - on one side is a well and the other side is a deep gorge. This remains an interesting challenge for sales incentive professionals - to draw a balance
