How do you pay your sales force? Salary plus commission? Quarterly bonuses?
Compensating a sales force is a tricky equation. Not only is each industry distinctive, each company is different, and each employee within that company is unique. This can make it difficult to offer the right incentives to generate the sales levels you want.
So, salary is a no braineróeveryone understands that and starts there. Then, you get to residuals. Well, "They're great!" is the resounding response. But, while they may be great for the recipient, are they great for your company? Does the employee see that residual stub and know that "This is my reward for closing X number of sales?" Or, does the employee come to expect, even count on, that residual. If so, your incentive efforts have gone out the window.
What about bonuses? If you ask a sales person what they would prefer, cash or that new laptop case, of course they are going to say cash. They're being practical óbut incentives aren't about what your employees want, it's about what you give them that motivates them to sell more. So, while they may prefer cash when given the choice, they are not going to equate paying the electric bill with being motivated to make more sales. On the other hand, every time they are on the road, packing or lugging their laptop through the airport, they will remember what they did that was rewarded with the luggage.
Remember, sales and compensation is not a "one size fits all" equation. The goal is to make the employees associate the reward with the effort, and repeat that behavior. So, throw your sales force some curves. Establish new contests and rewards; toss in romantic dinners or tickets to sporting events. They will have these memories and associate them with their hard work. Or, offer some physical items, such as stereo equipment or a hot tub. Every time they turn it on or jump in they will remember what they did to earn such a great prize. If it doesn't go over so well, try something new, that's the only way you'll learn what works.
