The sales compensation plan is a major factor in determining your team’s success. If it’s not well thought out, then you may find that motivation and effectiveness suffer while costs go up for both employer as well as employee due to reduced productivity levels or higher rates of illness among workers who are suffering from lackluster earnings when compared with what they could make elsewhere without having such restrictions imposed upon them by an incompetent boss.
It’s a well-known fact that sales compensation plans are important for the success of your team and company. It can make or break motivation, as well as contribute positively to bottom-line growth.
Due to sales compensation, turnover is high
The problem with your sales recruiters team’s compensation plan is not a new one. If you’ve been feeling overwhelmed lately, it could be time to redo the entire thing and rethink how much more pay people should receive for their successes in order to improve retention rates- but don’t forget about what makes them valuable.
It might surprise you to know that compensation is rarely the main contributor for turnover in sales. Sales professionals value many other factors above pay, and their decision to leave could be completely unrelated to your commissions or bonuses as an employer- probably more so than anything else.
Industry Leader’s Compensation Plan
So, you’re looking to give your salespeople something different than the next company? No worries! There are many ways of compensation – no two companies will offer their employees’ exactly alike. And that’s not surprising because it depends on what they need for each person in order to be successful; every business has its own unique demands and challenges when running smoothly (and if not then everyone loses).
Compensation will vary depending who’s working at any given time based largely upon industry norms but also personal preference or other factors specific only those directly impacted by them such as tenure with employer versus temporary assignment nature etc., which means finding out about these opportunities early into an entrepreneur.
People will only do what they are incented to do if they are incentivized
Competitive people who want to win for the sake of winning, even if there’s no money involved? No brainer.
I’ll bet you’re surprised by this one: Competitive individuals are more likely than not going to have a higher chance at success when it comes downplaying their competition! The fact that I can just wrap my head around such an easy strategy might seem ridiculous on paper but think about how many times we’ve seen these types of players come out ahead in any given situation – whether online or off-line (or both).
And did someone say gratification? Yeah…that pretty much sums up what motivates them as well because anyone would
Interesting Related Article: “The Essential Tools for Outside Sales Representatives“