Incentivizing beyond commission: creative rewards for sales teams
Incentivizing Beyond Commission: Creative Rewards for Sales Teams
One of the biggest challenges businesses face is how to motivate their sales teams to consistently hit and exceed their targets. While commission-based incentives have long been the norm, many companies are finding that creative and non-monetary rewards can be just as effective (if not more) in keeping their salespeople engaged, focused and motivated.
Why Relying on Commission-Based Incentives May Not be Enough
While commission-based incentives have been a go-to strategy for many businesses, they may not always be enough to motivate and retain top-performing salespeople. The following factors can limit the effectiveness of commission-based incentives:
- Commission Caps: Many companies implement commission caps to limit the amount of money sales reps can earn. This can be demotivating for high-performing salespeople who may feel that their efforts are not fully rewarded.
- Expensive Products or Services: If a product or service is expensive, it may take a long time for salespeople to close deals and earn commissions. This can lead to frustration and burnout, particularly for newer sales reps who are still building their pipelines.
- Delayed Gratification: Since commission-based incentives are typically tied to results, sales reps may have to wait months to see the fruits of their labor. This can be demotivating, particularly for those who need more immediate positive reinforcement.
Given these limitations, it's important for businesses to explore other types of incentives that can motivate and retain their sales teams over the long term.
Creative Rewards that Motivate Sales Teams
One way to go beyond commission-based incentives is to offer creative and non-monetary rewards that address the following needs of salespeople:
- Recognition: Salespeople often crave recognition for their hard work. Publicly acknowledging top-performing salespeople and giving them a chance to share their success stories can be a powerful motivator. For example, some businesses create a "Wall of Fame" where they display photos and bios of top-performing sales reps.
- Development: Salespeople want to improve their skills and advance their careers. Businesses can offer training programs or send reps to conferences and industry events to help them develop new skills and stay current on industry trends. This can be particularly effective for millennial sales reps who value continuous learning and development.
- Work-Life Balance: Salespeople have demanding jobs that can often cut into their personal lives. Offering flexible work arrangements (such as telecommuting or job-sharing) or perks such as gym memberships or on-site childcare can help salespeople achieve a better work-life balance.
- Creative Perks: Businesses can also offer creative perks that make work more enjoyable and less stressful. For example, some businesses have created "Zen rooms" where employees can go to meditate or nap. Others offer free snacks or monthly massages.
Ultimately, the key to effective incentives is to tailor them to the needs and goals of individual salespeople. By taking the time to understand what motivates each rep, businesses can create a more engaged and productive sales team.
Implementing a Successful Rewards Program
When implementing a rewards program, it's important to keep the following best practices in mind:
- Be Clear and Consistent: Salespeople should understand the criteria for earning rewards and be able to easily track their progress. The rewards program should also be consistent and fair, so that all salespeople have an equal opportunity to earn rewards.
- Set Attainable Goals: While it's important to challenge salespeople to stretch themselves, goals should always be realistic and attainable. If goals are too difficult to achieve, they can demotivate salespeople.
- Solicit Feedback: Salespeople are more likely to be invested in a rewards program when they feel that their input is valued. Businesses should regularly solicit feedback from sales reps on the effectiveness of the rewards program.
- Measure Results: Rewards programs should be regularly evaluated to assess their impact on sales performance. If a rewards program is not having the desired effect, businesses should be prepared to make changes or try a different approach.
Ultimately, a successful rewards program is one that aligns with the goals and values of the business and is able to motivate and retain top-performing salespeople over the long term.
Conclusion
Offering creative and non-monetary rewards can be an effective way to motivate and retain top-performing salespeople. By going beyond commission-based incentives and offering rewards that address the needs and goals of individual sales reps, businesses can create a more engaged and productive sales team. When implementing a rewards program, it's important to be clear, consistent, and to regularly evaluate and adapt the program based on results.