Align employee behavior with business objectives
There’s an important and positive relationship between sales compensation plans and work motivation. Work motivation ultimately leads to increased sales volume. Commissions are critical drivers of salespeople efforts, performance and outputs. Commission packages have a huge impact on the sales team’s level of engagement.
Accurate sales compensation plans will make salespeople engage with the company. Great commissions ensure sales reps continuity with the business. Remember that having quality employees requires to have the right balance between employee benefits and sales compensation.
Sales compensation plans become a key part of overall company growth strategy. The sales team always has a deep, direct impact on the company’s bottom line. And, the best salespeople know they are valuable members of the business.
Therefore, motivating your sales team will encourage high volume sales. This is a consequence of right sales compensation plans. Sales directors and managers who oversee developing sales compensation plans, should ask themselves: where is the business growth coming from?
Having effective sales compensation plans
Give salespeople a sense of satisfaction from their daily activities. Good compensation incentivizes sales teams to perform better and increase sales volume to fulfill all company goals. A compensation plan should always seek to fulfill its maximum potential.
Sales compensation plans are unavoidable when having a goal achievement strategy. By making sales compensation an important factor, sales departments establish a clearly defined path for continuous growth. We have mentioned it before, compensation should drive the behavior your sales team needs to follow. Check out this blog post where we talk about using commissions to drive goals.
Always consider your sales compensation plans as a focal point of business success. When your salespeople feel valued, they will perform their best. They will close sales more efficiently. A good commission plan will spread a work environment where sales reps are motivated to increasingly deliver greater results.
Without the right sales compensation plans, no quantifiable adjustment of performance will take place. Once you have well-defined commission plans, consider automating your processes using tools like Blitz. You will see how business morale increases, and salespeople are motivated to come to work and close all sales.
Negash, Rijalu, et al. “The Effect of Compensation on Employees Motivation: In Jimma University Academic Staff.” Basic Research Journal of Business Management and Accounts, vol. 3, no. 2, Feb. 2014, pp. 17–27.