Reinventing the Sales Pipeline
Most sales executives agree that a high-performing sales organization is the result of strong sales representatives, solid strategy, intuitive processes, comprehensive performance management, along with a well-defined development and reward programs.
Many industry experts believe that sales professionals are not just motivated by financial and monetary means (i.e. “coin operated”) but rather through a combination of other factors such as commitment, pride and recognition. This means that financial incentives alone are not sufficient but should be part of a larger program that drive commitment and employee engagement.
Studies show that in 2013, 75% of the $77B spent to drive sales was used in form of tangible (monetary) rewards. These studies support that high achievement in sales is typically the result of a balanced financial and non-financial incentive program.
More companies are developing comprehensive reward programs that incorporate multiple behavior based drivers mapped to their organizational make-up. A comprehensive and effective reward program is typically designed with employees’ needs, preferences and values in mind and those can vary based on generational, cultural and gender make-up of an organization.
Industry experts oppose the notion of “Pay for results and not processes”. They believe that the idea of compensating individuals for results only is a shortsighted view and companies need to consider new approaches to include improving critical selling skills, ongoing training and coaching to better enable their organization for the ever-changing sales environment.
The changing workplace, especially as it relates to millennials becoming a significant part of tomorrow’s workforce, is becoming more and more a topic of conversation and anxiety. Progressive companies are already adapting their systems to be more effective in managing millennial sales professionals.
Millennials value financial compensation less than previous generations but care for internal recognition, employee engagement, as well as learning and development. A reward system that targets millennials should 1) promote a culture of recognition and inclusion 2) offer a balanced mix of rewards that offer employees choices and 3) utilize a platform for communication that is effective, intuitive and reliable.
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About the AuthorMore Content by Deb Broderson