Finding what motivates your employees is the key to getting the most out of them. Learn about the 5 Tips to Create a Sales Incentive Program That Works
Are you not getting the results you want? Are your salespeople falling short of sales targets? Your sales incentive program may be to blame.
There is no one-size-fits-all sales incentive program – a reason why there are so many different systems and approaches. But there is a right sales incentive program for your organization. You just need to figure out what it is.
“When you look at the right things when designing a successful sales incentive compensation plan, you’re more likely to reward the right sales behavior — and more importantly, your sales team will be more likely to achieve the sales performance you want,” says Christopher Cabrera from Xactly.
Whether your current incentive program is not working or you are considering implementing one to motivate your salespeople, here are five tips to help you create an effective sales incentive program:
Understanding the factors that motivate your employees is a key element in boosting performance. Make sure your incentive program rewards desired behaviours with the incentives employees desire most. Remember that you may need to offer multiple incentives to motivate individual employees.
One of the main things that sales reps want to know is their quota. Setting reasonable quotas, ones that are not too difficult or easy to achieve, will help keep them focused and motivated. The best quotas are challenging, but also achievable.
The metrics you choose to determine compensation will impact the effectiveness of your incentive program. You know what matters most to your company, so choose metrics that will have the biggest impact on your bottom line.
Try to avoid creating overly complex incentive programs with multiple formulas and factors. Many incentive programs fail because of the complexity of reporting or how rewards are won.
It’s not always about money, although many sales incentive plans are. Rather, focus on incentives that drive desired behaviours. Get your reps involved and find out what matters to them in addition to monetary compensation.
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Claire has 4+ years of experience in sales and recruitment. As a Director of Client Services, her main objective is to connect great people to great companies by building strong relationships with both top clients and candidates in the sales industry. She specializes in sales roles of all seniority levels for both enterprise and start-up clients North American wide. When Claire isn't networking with top talent, she enjoys being outdoors, traveling and spending time with friends & family.