One of the first things I ask a new prospect for our service is that they explain to me how they are planning to compensate their new sales representative. Remarkably, it’s not infrequent that they provide some ideas of what they think they’re going to do. I immediately wonder if they are also unsure of exactly what they want their new hire to do.
Failing to develop a compensation plan that really rewards productivity is likely to doom the organization to high turnover of top performers. If your number one seller doesn’t make a LOT more money than the average, count on her to be open to better offers. Sales should be a true meritocracy where the best producers are clearly rewarded and appreciated.
And don’t think that little perks, like an extra day off, will be the same as being compensated monetarily according to performance. A real seller, making six figures, is going to see an extra day off as a cut to his income. Weekend work is routine for top performers. So how is an “extra day off” going to be of any value?
When thinking of compensation plans, first know what you really want the seller to do. Are they responsible for managing existing clients and growing revenue from them? Or are they responsible for developing new accounts? Focus the upside of the plan on achieving the predetermined goal. And don’t be stingy for exceeding the goal. Look for ways you can include profitability bonuses in the compensation plan. A seller who brings in deals more profitable than expected should be able to share in the extra dough. Talk about a motivator! It will make your top performers feel as though they have equity in the business as they’re sharing profits.
Shower rewards on the top performers. To learn more about compensation strategies and its impact on sales recruitment, click HERE.