Sales Commission Plans That Actually Work |Sales Compensation Series Show 3 | DTSM 52
Written by Dave Lorenzo on October 9, 2019 / Inside BS Podcast
Within the sales department of any company, there should be appropriate incentive plans for employees so that they stay motivated to keep improving. This show is about the performance management techniques that can help you to develop your sales staff and boost efficiency.
First, you should never promote your best salespeople to managerial positions. When this happens, you often lose top performers and gain inadequate managers.
Instead, you should develop a sales track that compensates people well for relationship development. In some organizations the top performing salespeople can even make as much as the top managers. Appropriate incentives will help to motivate your staff from the very beginning.
Aside from having appropriate incentive plans for employees who perform well, one of the best performance management techniques is to track everyone’s performance and publish the rankings. This way, the best salespeople are elevated within the organization and everyone below them can have something to aim for.
Beyond that, you should give lots of attention to the salespeople in the top 30 percent of the organization. The top 10 percent should be recognized for their achievements while the next 20 percent should be given additional training and support so that they can move into the top 10 percent.
The bottom 10 percent should be cut loose every year. Your energy should be put toward improving the performance of the rest of your sales staff.
The performance management techniques that you implement should be designed to elevate the performance of all salespeople at once. Remember to pay special attention to those who have the potential to improve. Likewise, make sure that any incentive plans for employees that you implement reflect the importance of your top performers.
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