Are You Maximizing Your Sales Force?
One of the biggest expenditures that businesses have today is their compensation packages for their sales force. Companies in the United States spend over $800 billion annually just to pay their salespeople and motivate them to do even more! The problem, however, is that many of these companies have failed to engage their employees in a comprehensive way. Only 5% of salespeople say that they actually understand their companies strategy.
Companies That Engage Tend To Profit
There are three basic types of salespeople that must be properly coached in order for them to maximize their success and the outcomes that their employers need. You have:
• All Star Salespeople. These are the salespeople that can handle any task that are handed to them. They could sell dirt to a farmer. The problem that many supervisors have in coaching these all stars is that they impose a ceiling, or a maximum level of success that can be achieved. This demotivates the all stars and causes them to look for a different employer.
• The Core Salespeople. These are the people who do a consistently good job. They are reliable and will bring virtually any project to completion. The problem that many supervisors have with these core employees relates to their motivation. Money is often used to motivate these folks, but it isn’t tied to objectives. It’s tied to the fiscal year.
• The Laggard Salespeople. These are the people who you have to constantly poke and prod to make sure they get their job done. Though their motivation is to stay employed, they want to do the bare minimum to make sure that happens. To coach these folks, supervisors need to realize that at best, these laggards will meet the lowest possible set of standards for success. Setting the bar high will often just create demotivation instead of motivation. That means you’ve got two choices: get rid of the laggards or accept their low standards.
This Is Why Performance Based Pay Works So Well
When a paycheck is based on a salesperson’s ability to sell, you will hit the motivations of most of the sales force that is employed. The all stars can become workaholics and earn as much money as they possibly can. The core salespeople on the force will consistently earn the amount of money they need to make their ends meet, with occasional bursts of more activity when they might have a greater financial need that needs to be met. The laggards will ultimately complain about their paycheck being too low, demand more money, and leave when they don’t receive it.
Your Sales Force Needs the Right Toolbox
The reason why many salespeople become laggards isn’t because they are lazy and don’t care. It’s because they don’t have the confidence they need to be able to do their jobs effectively. That means it is ultimately on the company to provide the training and access to resources that will help these laggards become core employees or even superstars. Regular job updates, practice seminars, and access to the latest sales tools with consistent feedback can help any good employee become a great employee! What does your sales force need to succeed today?