Do you have some advice on how to best structure my sales teams commission/incentives?
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To be honest the correct advice and best approach for you will highly depend on the size of the company, number of reps, specific market etc. Can you provide some more info?
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I think it’s very important to look at your organizational structure and decide what could constitute strong incentives e.g. depending on how independent your workforce is you can decide between group and individual rewards as well as how often they are distributed (monthly vs. quarterly). In the end, each employee is different and has an individual drive.
In my opinion, regardless of the organizational structure, the following points have to be taken into account when designing an incentive system:
- clearly defined and communicated, realistic, measurable goals
- consistent and continuous feedback
- customized pay methodologies & metrics based on employees role/experience
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Yes, totally agree with the post from @kendrasrad. It’s really important to set achievable goals which are yet not too easy! Also keep in mind the size of the territory and what is realistic in terms of territory size and potential.
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Hello @grace! Providing your sales team with incentives is a great idea to push them a little bit harder. To answer your question, I really have to know a little bit more about your team. Not the same incentives will work for different sales reps and team culture. If your sales team is small enough, I really encourage you to get to know your reps a bit better to find out what they’d appreciate as an added bonus. For example, maybe a rep wants to learn more about body language during sales meetings. Give them a giftcard to a bookstore or a free training day. Want your team to bond better? How about treating them to a nice dinner at a restaurant? A little extra money added to a paycheck is always welcome, but tailoring your incentives to your unique sales team shows that you are an excellent sales manager.
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Hello @grace! Providing your sales team with incentives is a great idea to push them a little bit harder. To answer your question, I really have to know a little bit more about your team. Not the same incentives will work for different sales reps and team culture. If your sales team is small enough, I really encourage you to get to know your reps a bit better to find out what they’d appreciate as an added bonus. For example, maybe a rep wants to learn more about body language during sales meetings. Give them a giftcard to a bookstore or a free training day. Want your team to bond better? How about treating them to a nice dinner at a restaurant? A little extra money added to a paycheck is always welcome, but tailoring your incentives to your unique sales team shows that you are an excellent sales manager.