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July 26, 1990

DEC LAUNCHES ENHANCED BONUS PROGRAMME TO ENERGISE ITS US SALES FORCE

By CBR Staff Writer

Yet again, DEC is tinkering with its US sales and marketing channels in an attempt to boost revenues that remain stubbornly flat. Computer Systems News says that the company is trying to motivate its salesforce by improving the bonus structure, and is now focusing on vertical industry or application business units. DEC acknowledges that the new focus will take time to evolve, and the anticipated benefits may be years away. DEC drafted in a consultancy that specialises in pay for salespeople, and says that bonuses could jump to $20,000 from around $12,000. The scheme is to be open to around 50% of DEC’s sales staff, up from the former 20%, but it has been criticised by observers who say that the bonuses will still be significantly lower than those offered by the likes of Amdahl. Another criticism levelled at the new structure is that the shift into vertical markets will create confusion among sales staff who may be reluctant to switch attention from existing non-vertical accounts. However, DEC says the new plan will tie together field sales and product business groups that have gone their own way over the past decade. Application business units are to become heavily involved in marketing and product development so that the product line is more closely tied to customers needs, and the bonus scheme is said to enable salespeople to concentrate on long-term account control rather than the high-end of DEC’s line.

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