employees
You can't just hire a salesperson and forget about them. Sooner or later, employees will start to burn out. To avoid this, you need to build a motivation system so that the department's work is effective.
Material motivation of sales department employees
Monetary reward for plan fulfillment is the main incentive for which managers are ready to make maximum efforts. The company's management can achieve sales growth by skillfully applying the following principles of employee motivation:
Transparency
Provide the ability to see what band database each manager's income consists of. Bonus calculation methods should be logical and clear. Graphs, tables, and diagrams clearly demonstrate the effectiveness of successful employees and motivate those lagging behind to catch up.
Darwin's principle
The rule of natural selection works in all areas that involve competition. The work of managers who fulfill and exceed the plan is paid above the market. Those who fail to cope with the tasks are content with the salary. To get more, they need to improve or change jobs.
Quick income
Create conditions that will push sales staff to achieve goals. Assign bonuses based on the results of the working day or week.
An annual bonus is good, but small payments of 1-2 thousand motivate people to work better every day. It is appropriate to use such a technique both during a temporary lull and during increased seasonal demand for the product.
Large rapids
The principle of determining bonuses used by many companies looks like this:
less than 80% of the plan – only salary is paid;
from 80% to 100% of target indicators – get 1% of revenue;
from 100% to 120% of the plan - premium of about 2%;
over 120% of target indicators – 4%.
Sales department employees must firmly know that failure to meet the set conditions will result in a drop in their income and vice versa. If a manager wants to have a good income, he must not only make a plan, but also constantly work to improve his personal performance.
The system of hard and soft salary, common in sales, allows employees in this field to be guaranteed to receive the minimum necessary for life. All other needs are covered by that part of the income, the size of which depends on the professionalism and ambition of a particular employee.
Assign a soft salary for achieving KPIs (key performance indicators). To determine them, it is necessary to analyze sales and identify the factors on which revenue depends. Companies using KPIs simultaneously solve two pressing problems: they motivate employees to fulfill the plan and maintain discipline.
One to three
Some managers use a simple principle: sold more than the plan - get a bonus for yourself and for those who did not cope with this task. A successful manager has three times more than a lazy one.
No need to spoil
Excessive generosity of management is as harmful as stinginess. There is no point in showering sales staff with gold, even if things are going very well. Do not go beyond the agreed upon limits, otherwise it will be difficult to motivate employees when the situation changes for the worse.