The transition to remote and hybrid work has fundamentally altered the ways that organisations design and motivate their sales teams. To maintain the equity of compensation structures, companies must reset performance benchmarks and rewards so they apply equally in home-based and office work. Adapting sales compensation for remote and hybrid workforces might be your weapon.
1. Define Clear Performance Metrics:
In a remote or hybrid world, what a salesperson has done to drive sales, for example, may not be as clear as when everyone is present in an office environment. An organisation should supplement the more common and obvious sales volume metrics with secondary metrics of success: customer satisfaction; digital engagement rates; and even ratios such as leads introduced vs leads that converted. A salesperson who is strong at telecommunicating and capturing clients on screens and thereby managing deals via virtual interaction and/or follow-ups should be affirmed for exhibiting effective prowess in the remote channels.
2. Utilize Advanced Technology for Tracking:
Using CRM systems and sales performance management systems to track sales activities is key – to see and get immediate feedback on what sales reps are doing in real time, to evaluate their performance, and to identify areas of weakness for coaching. CRM solutions, for instance, offers comprehensive dashboards that can let you see the sales efforts of both the remote salespeople and the in-office sales team so everyone can be managed on an even keel.
3. Foster Regular Communication and Feedback:
Consistent communication and feedback is a critical part of managing a dispersed workforce. Several tools and techniques have been devised to ensure broader input, quick response to change, and to monitor empowered employees. These include monthly check-ins, quarterly reviews, 20-60-20 (where the manager speaks for 20 per cent, employees/peers for 60 per cent, and the manager wraps up with 20 per cent) feedback mechanisms, and 360-degree feedback systems, where feedback on an individual’s performance is collated and compiled from everyone, including peers, managers and clients, to give an objectively fair appraisal.
4. Adapt Compensation Models:
The nuances of remoteness and hybridity might negate the value of more traditional commission-based compensation models. Consider hybrid compensation models that blend base salary with commissions and additional performance bonuses. For instance, digital sales targets that reward remote workers for leveraging online avenues and channels effectively might motivate them to embrace sales-enablement tools like Zoom or Microsoft Teams. Similarly, hybrid workers could also receive bonuses for deftly navigating front-office client services and online product or service fulfilment.
5. Ensure Equity and Inclusion:
Compensation structures should be routinely reviewed to ensure that there are no inequities, and compensation frameworks should be standardised and set across the organisation. All employees should have access to the same training and development opportunities, irrespective of where they work.
Case Study:
A technology company that retooled its sales commission programme to include new engagement metrics (eg, calls, leads) and to factor in bonuses for virtual sales performance. The result was both to motivate its farflung reps, but also to incentivise on-site salespeople who quickly began to meet the new digital-first expectations. Sales revenue went up by 20 per cent, and employee satisfaction improved.
By changing performance metrics, using technology, fostering communication, changing compensation and being equitable, organisations can incent their most important customer-facing resource, their sales teams, and retain their performance metrics and incentive pay regardless of the work model, which in turn will ensure their success.
