Northwestern Mutual Case Study

1604 Words7 Pages
The objective of paying our employees is to increase employee satisfaction and loyalty. Northwestern sends too much on recruiting and education to see a majority of its employee leave before they are able to have a full career as a financial advisor. By paying their employees northwestern is able increase employee productivity, increase the employee’s lifespan at the company, which will increase the number of clients northwestern will have as well. Sales reps salary in the first year is 70,000 and commission is capped until, they exceed the sales revenue in $70,000. Anything over $70,000 in sales Reps will receive 10 % commission on all sales life, disability, and Long-term care. The reasoning behind the $70,000 salary is Dan Price the CEO of Gravity payments decided to pay all of his employees $70,000 based on a 2010 Princeton study that basically says if you make less than $70,000 there will be compromises in your life that will effect your work productivity and positivity almost every single day (Weise, 2015, para. 12). $70,000 is a healthy amount of income for these reps, but it is also their sales quota as well. To reach that quota reps will be working long hours from 7am to 5pm or later based on…show more content…
Having an incredibly high turnover rate of reps is a waste of time, resources, and money. If only a couple reps that make it to the 4-year mark Northwestern is just squandering sales reprehensive potential. Giving these reps a starting salary of $70,000 and slowly decrease their salary to be more reliant on commission. This will increase the positivity in the office and create a culture that Northwestern wants to organically grow its sales force and have more reps have a full long lasting career at Northwestern
Open Document