Businesses that want their sales teams to perform at their peak potential require management techniques that can pull these kinds of output from their staff. Such strategies call for incentive compensation planning that works with what employees want and what organizations can afford to offer. In instances where employees are being asked to give more, it's best for firms to offer rewards equal to this increase in productivity. However, attribution of funds and awards should be clearly quantified and laid out before companies launch such options.
Compensation and employee management
As CRN Online wrote, it's important for entities to balance their sales incentive compensation payouts. In many cases, businesses may be looking to reward only specific kinds of output but ignoring the essential intermediary steps associated with closing important deals. The different between hunting for huge deals and always giving the same quality of production presents a danger zone for organizations of all kinds.
While firms want their personnel to close massive deals, this is not a good scale on which to base sales incentive compensation. These kinds of clients and pitch opportunities are often few and far between, and when personnel only aim to please big-ticket clients, they fail to treat smaller buyers with the same level of attention. Managers need to address these imbalances so that they always create solutions that reward employees for various kinds of effort, thereby acknowledging their endeavors. This also shows staff members that businesses appreciate both the big sale and the consistent experience.
Offering better rewards
Improving incentive compensation plans in this way helps organizations boost employee engagement and retention figures, as it places visible value in what all employees can do. Proving to personnel that their range of skills and attentiveness to each consumer are most important are good ways of encouraging better output.
As Forbes stated, companies with the highest levels of engagement, satisfaction and loyalty among members of the workforce are those with the best incentive compensation plans. The source stated that a study conducted by CareerBliss found that people prefer to be rewarded for their efforts rather than simply paid a large, regular paycheck. The company looked at the top organizations in terms of employee productivity and year-over-year improvement in reporting, showing that those firms with the most attention to employee empowerment were also the ones exhibiting the most positive results.