Would your salespeople rather receive praise or a monetary reward? Does recognition from peers mean as much as when it comes from a leader? When it comes to motivating your salespeople, sales leaders often jump right to compensation. But there are many ways salespeople would like to be rewarded.
The first area sales leaders want to start with is compensation but that may not be the most effective place to start.
Your sales compensation strategy is the plan that drives the sales team's performance and helps them increase revenue.
The purpose of a sales compensation plan is to encourage positive behaviors across your team, set expectations and standards for compensation for all salespeople, and drive results to achieve overall team and organizational goals. Compensation can also be an important factor when attracting and retaining talent on your sales team.
According to Incentive Research Foundation, “properly structured incentive programs can increase employee performance by 44%.” The structure of a sales compensation plan varies by business and is typically based on team organization, resources, and goals.
But your compensation plan is not the only way to reward and recognize your sales team.
Salespeople are just as motivated by rewards and recognition as any other employee. Of course, monetary rewards are important, but they’re not the only way to acknowledge an individual who works hard and succeeds. According to The Culture Works, “Only 17% of sales people ranked money in their top motivators.” Other ways to reward and recognize your salespeople can include; time, shoutouts, a team outing, and more.
Money-based incentives are not always the most effective way of driving sales performance. Time, on the other hand, is a priceless gift – and as a sales leader, you can offer it to your top-achieving salespeople countless ways. From an extra day off, to a more flexible work schedule, to working remote.
When your salesperson does a good job or hits a goal, point it out immediately. According to Psychometrics, “58% of people say that they would feel more engaged if leaders gave recognition to the job they were doing.”
You can recognize your salespeople in several ways, in person, during your one-on-one, in your team 5-in-5s, or in a group meeting.
Competition and sales go together like peanut butter and jelly. It is hard to have one without the other. Try setting team goals (in addition to individual goals) and build a cooperative culture. Once your team reaches the goal, take them out for happy hour or for a nice meal to commemorate collective achievements.
Building on that subtle team goal work in more team-building actives. If your team reaches a bigger goal, why not let them enjoy the big win together. Designate a set activity and band everyone together. Go bowling, ax throwing, day at the lake, etc.
Personal or professional development can be a powerful motivator for salespeople who are eager to improve themselves. This could be tickets to an upcoming sales event or conference, or a gift card to an online course to develop advanced techniques.
Subscription boxes are trending right now. This is an excellent choice for remote salespeople since they can be delivered to their homes. This allows you to give your salespeople the things they love while maintaining a safe distance.
Above were just few of the ways you can reward and recognize your salespeople, but you may be wondering why it’s important to recognize and reward them. According to Incentive Research Foundation, “found that up to 50% of workers who received an incentive at work are more focused on how the reward is presented to them than on the reward itself.” So, recognition in itself can be a powerful motivator.
Forbes, shows that “79% of people who quit their jobs cite “lack of appreciation” as their reason for leaving.” When salespeople spend considerable time and talent on the business and leadership does not validate their work or reward their contributions, it’s no wonder they seek employment elsewhere.
The most important thing to keep in mind for retaining top talent is to treat your salespeople as individuals who bring value and insights to your business.
Rewards and recognition will vary from organization to organization, and your unique company needs. Your sales team may be motivated by more than just monetary rewards. You could reward them with time rewards, shout-outs, group outings, etc. It is ultimately up to you to understand how best to show your appreciation.