As the economy continues to improve, businesses are feeling more secure about making expenditures and investing throughout their operations. One major way companies should direct these funds is toward their personnel. Incentive compensation is vital in many fields in order to retain top talent and promote better performance, especially in sectors like sales where weak output may have been accepted in the past due to lack of money for new talent or initiatives.
A study by Deloitte showed that nearly one-third of all sales leaders feel the recession has ended, indicating that their businesses are seeing environmental factors in their marketing and finance sections that show them they are back on track. About the same volume of managers feel the recession has not yet ended but will be over by the end of next year, potentially meaning similar improvements within their own organizations. These figures are much improved compared to those tabulated by Deloitte in 2010.
At the same time, the study found that only half of all salesforce leaders were happy with their sales teams' current output. This is a major leap upward from 2010, where barely more than one-third expressed the same sentiment. Still, the sensation of improved financial indicators could be a sign that the 50 percent of displeased managers are in positions where they can either invest in personnel training or cut ties with those who fail to meet revenue goals. Investing in incentive compensation could help organizations find the middle ground between these two factors, offering staff members the opportunity to do better now that markets are improving.
Changing incentive pitches
Business Solutions Management Online wrote that companies need to reinforce corporate culture and push incentive rewards to match current goals. Within a shifting economy, firms are largely focusing on bringing in more revenue and positioning themselves at the forefront of strategic product families to catch more customers looking for these items. In order to do that, organizations may have to try new avenues of advertising and sales pitching, rewarding employees most who make these unique outlets work.
As more workforce resources become digital and companies move progressively toward the cloud, so too must the way businesses reward their staff. With more money available to many entities and other firms feeling optimistic about the future, now is the perfect time to institute more aggressive incentive compensation plans to drive sales teams to perform better. That way, companies will catch the most consumers, resulting in positive outcomes for personnel and employers alike.