Companies must ensure they're doing everything they can to get their sales teams motivated. In instances where employees just aren't feeling up to the job, individual performances can slip considerably, customer service may decline and a number of other negative repercussions could take place. If this is a single occasion, fixing the problem may not be so difficult, but when a person is consistently lacking the engagement and job satisfaction to give their all, if can be disastrous for organizations. In order to avoid this sort of mentality on a sweeping level throughout the company, incentive compensation management can have a significant, positive impact on how individuals do their jobs.
The Huffington Post wrote that offering varied compensation and reward strategies could be just what businesses need to fuel the competitive drive in their staff members. The source stated that two firms, Hess Corporation and Agrium Incorporated, are working on proposals to compensate their independent directors in entirely new ways that could make these high-paid sales professionals work more diligently than companies might otherwise expect them to. Usually, the source wrote, these employees get monetary and investment rewards for their time and effort. The newly proposed compensation plans would require that these personnel perform well themselves and also encourage their teams to success in order to gain regular pay. Any rewards above and beyond that would be based entirely on how well the professionals under the director's command do during a set period.
Targeting total outcomes
This strategy ensures that businesses are seeing a top-down improvement in the overall way employees perform and motivate teams. If a manager is not feeling compelled to get more out of his staff, the whole group has a tendency to fall flat. By pushing incentive compensation from management, companies can expect to see more attention to employee metrics, coaching and relationship brokering.
Business 2 Community added that a study by CSO Insight showed that many organizations are interested in implementing a similar strategy for personnel at all levels of their operations. According to the Sales Management Optimization 2013 Key Trends Survey, nearly two-thirds of firms already practice an incentive compensation plan that rewards team leaders based on how well their individual members did during a certain timeframe. In a little over half of all responding companies, managers were even rewarded based on the performance of individual representatives. Making compensation so personal and specific could help leaders put more effort into fostering better performances from all their team members, not just those with the best skills already.