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.
Rewarding Performance
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.
Encourage Competition
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.