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Motivating Sales agents is a hard task, some employees are self motivated and some of them need the continues push, recognition, incentives and other many methods out there. We need more ideas on this topic with your help.
Motivational tools are to streach the performance beyond a bench mark; more one performs beyond that, the more opportunities to earn.
To ensure that all reaches the bench mark other factors govern. Such as the skill sets, product knowledge, competition knowledge, call planning and follow-ups, route planning, effective communication, etc. Therefore it's important for regular reviews of activities and required inputs like training, coaching, role plays to develop the skill sets.
Once the sales person crosses the performance bench mark, he / she will be motivated to streach his / her performance for extra variable earnings and recognition / awards.
I believe that a higher percentage commission will increase their work effort, but only to certain extend. I have an idea that you can work on or incorporate in your company, you can add a section in their contract where you stipulate that if they achieve a certain amount of sales (or income to the company) that they will receive certain bonuses or benefits for the month to follow. Even a promotion after five or six months can keep everyone on their toes.
When you work in an environment where you feel needed and your employer makes sure you know that you are valued, you will work harder to keep being the number one.
I always recommend low fixed package and high commissions for sales team
the best is to cater for thewelfarism of your sales employee,when there is special incentive for accommodation,feeding,transport and health your products is at sales pick,even if the salary and commission is very small,they are comfortable to move on.
Most employees feel that their salary is directly proportional to their importance in the company. A good salary combined with an equally good incentive package gives him the pride and motivation to work harder. Other wise, you'll find that most of them are surfing the internet trying to find a better option.
Yes it is to some extent true that sales people should be given a low basic salary and high incentive rates to motivate them. But several things have to be kept in mind while making the target. If the territory is rural the target has to be lower as the sales rep has to do more travelling to meet the customers. Also sales target in a saturated market has to be lower than emerging markets. For example the mobile market in the big metros in India is saturated. So the volume achieved would be lower compared to emerging markets in smaller towns even for value added mobile services. First the sales rep must feel there is a level playing field to be motivated. And a sales rep who is experienced and earning a lot of commission promoting him would be a better way to retain him than increasing financial benefits. Because a competitor may be giving higher financial benefits.
Our organization is marketing and sales based and large number of our population is comprised of sales team. Yes, as compare to office based employees, the basic salary of sales employee is on lower side (not too much) then it is back by various heads like daily fuel allowance, nigh stay allowance, various promotional allowance, traveling allowance, meal expense, lucrative sales incentives etc which makes their salary a handsome look but for this they have to do a lot footwork. Additionally, head office send them various gifts in form of Tie & cufflinks, recently two-piece suits have been delivered at their home(regional manager level), on achieving targets awarding them smart cell phones and cake cutting ceremonies. It’s a whole process and list of benefits which have been planned with consultation of HR and Marketing directors with approval of top management. The ultimate goal is to keep them motivated and active in field as their efficiency is link with organization performance.
Absolutely no.
In most commercially developed countries, the healthy ratio of basic salary to sales commission have long been established. No need to re-invent the wheel if we are talking common products and services.
However, in the field of specialty sales (ie: elevator sales, bulk telecom service, water treatment technology sales and the likes), huge sales commission are customary.
Best motivator is for the salesman to learn his place and value in the economy. Monetary compensation is only secondary.
Firstly, in my opinion, sales employees must be enrolled with a good salary so that they remain motivated from the beginning of their career. High commission sometimes may be a de-motivating factor. Therefore, I will always recommend that sales people may be awarded with performance incentive and this must be tie in with target oriented performance.
I think that the basic salary plus the commission should be balanced depending on the product and its commission percentage
