In today’s ultra-competitive labour market, attracting andperforming salespeople is more difficult than ever. Companies need to draft incentive packages that will be attractive to the best people – and keep them for the long term. Here’s how to do it:
Link Pay to Business Objectives:
The first step to changing the behaviour of your sales staff is ensuring that your sales compensation plan is directly tied to your business objectives. If one of the company’s specific goals is to increase the sale of a new product, for example, pay bonuses for exceeding only that product’s sales targets. Your firm, the managers and the sales team all have the same goals; you have the chance of a win–win situation.
Competitive Base Pay:
A base salary in the 75th percentile of the market is still a powerful motivator, and it provides the stability an ambitious agent needs, while still rewarding top performers.
Incorporate Non-Monetary Benefits:
A tight labour market can mean non-monetary benefits are a differentiator. Creating a flexible schedule so that employees can address personal or family needs by working more or fewer hours; providing the opportunity to gain greater responsibility, such as more customers or territory; or professional development programmes that help employees advance their leadership skills may make your organisation more attractive to top talent. Access to leadership training, for example for ambitious salespeople, could be important.
Personalise the Compensation Package:
Know that every sales rep has different motivations. For some, it might be base salary, while for others, they’re motivated more by high commission potential, or stock options. By allowing customization in compensation packages, you’re able to tailor the package exactly to their needs, which is going to increase job satisfaction, and also decrease turnover.
Keep Compensation Relevant:
The labour market and the business environment are dynamic. Regularly review compensation packages and refresh them to keep them up to date with market trends. For instance, you can schedule compensation reviews once each quarter to remain competitive.
Through such strategies, organisations could help sales professionals develop the habit of playing the sales game for the long haul. In turn, they could be a force to be reckoned with within the company.
