The Responsibility of Running a Sales Compensation Plan is Huge!

A motivation scheme has the potential to bring terrific results in terms of increasing revenues, meeting goals, and spurring the sales team to greater heights.

However, a sales scheme can also have the opposite effect. If not properly designed, a sales scheme can demotivate people, harm the sales force, and have a dramatic negative impact on the sales numbers and productivity of the company.

There are three pitfalls that managers must be careful to avoid:

  • salespeople incorrectly misinterpreting the system (this is often a problem of lack of clear communication from the management).
  • salespeople using the system to their advantage when it fits their strengths towards selling certain products, but not using it correctly at other times.
  • salespeople noticing that the system hardly adds much to their pay packet, and therefore not engaging with it.

Any of these issues will affect the sales teams’ performance and the company’s results. Plus, demotivated salespeople are more likely to leave the company for a better opportunity, which means more time and money spent on finding and training new sales staff.

No company can afford to risk its future, so managers must take the level of responsibility that comes with using a motivation scheme seriously. When designing and communicating the system, managers must recognise and accept the responsibility that comes with it, staying aware that motivation schemes can both increase and decrease success.No company can afford to risk its future and that shows that the level of responsibility behind the notion of motivation plans is quite important. 

This site uses Akismet to reduce spam. Learn how your comment data is processed.