One of the main drivers of business success is retaining top staff, but perhaps even more important than this is keeping your top earners motivated and performing. The difference between a thriving business and a failing business lies with how much revenue your salespeople are bringing in each month, so ensuring they are performing at their best is vital. Keeping your staff ‘on the ball’ and busy is often more difficult than it sounds, so here are some of our thoughts on how best to approach the matter.
A finely tuned and thought out compensation structure is one of the best ways to motivate staff, especially salespeople. Too often businesses are not representing their top performers with incentive structures to really get them going. Having a cap on earnings and bonuses may seem to make initial sense to keep business costs down, but the logic is often flawed. Once one of your employees has reached their limit of earnings what’s in it for them to work hard? Put yourself in their shoes, if you hit your annual salary cap by October you will be inclined to coast along until the start of January, as selfish as this sounds it’s how the human brain is programmed to work. As long as your bonus structure is linked to profit made for the business and not just turnover, the increased salary you pay to an employee will only be rising in relation to money they make for the business. The best way to devise a bonus structure is to form it in such a way that it is a win-win for your employee and for your business.
Secondly, a lot of sales organisations are creating disincentives for staff by rewarding both poorly performing and highly performing salespeople. Giving bonuses to staff who meet the minimum required standard you expect as an employer sends out the wrong message. For example giving pay-outs to staff who achieve less than 50% of their sales goals discourages them from hitting their peaks, and communicates to your top performers that you as a business are satisfied with mediocrity. If you are looking to rejuvenate your sales staff and attract the best talent, a strong compensation structure is probably the best place to start.
Many businesses assume that salespeople are only motivated by money. This isn’t always true. Everyone enjoys that rush of competing against your colleagues and as an employer if you can encourage a bit of friendly rivalry between your staff your sales revenue is very likely to increase. As sad as it sounds everybody likes to ‘get one up’ on everyone and giving prizes to the best performing staff is a good way to get the best out of everyone. These prizes or rewards do not always have to be financial, an interesting reward scheme at a business I know is that the best performing salesperson for that month receives access to the best parking space at the company. Little things like this can really boost your employees to their top level.
Written by Andy at Aaron Wallis Sales Recruitment.