Motivating Sales Forces

When your sales force is behind in delivering acceptable results is the perfect time to evaluate their compensation and pay plans. There are a variety of sales compensation plans as well as different incentives and motivational tools that can be used individually or as a group. Management can then set new goals and create a management plan that will help the sales force keep motivated throughout the next sales cycle.

Sales Compensation Packages

For sales professionals, there are three basic compensation forms. The first is salary based which has both positive and negative aspects. For a growing company, salary based salespeople can be moved to a new territory easily. However, a downside to straight salary is that salespeople tend to focus on selling rather than building new relationships. The second is commission based which allows a company to pay salespeople only for results. This plan incurs a high amount of turnover, but creates a high incentive to close a sale (Dessler, 2008).

Sales Compensation Plans

Incentives

Sale Practices

Salary

Bonuses

Individual

Commission

Sales Contests

Group

Combination

Sales Awards

Quotas

The plan that most companies use for their sales force is some sort of combination of salary and commission. In addition, management can add include bonuses, sales contests and sales awards. Sales contests can be based on individual performance or in a group setting. Additionally, management may consider setting quotas that fit their sales expectations. Essentially, management has an assortment of tools that can be used to determine the sales forces compensation as well as tools to help motivate the division (Dessler, 2008).

Management Planning

After determining what type of compensation package would work best for a company, management can also implement control systems that will create a strong department. The first is to measure and see how the actual results compare with what management has planned. This type of data can tell if the sales force's performance is achieving the goals that management has set or if the department (or individual) is underperforming. This data could also tell if the goals where easily achieved by the group or if the expectations were too high for the majority of the sales force (ACCEL, 2008).

The next step after evaluating results is to give constructive feedback, coach the sales force and give training when necessary. This can give managers invaluable insight into how their management plans (or compensation packages) are motivating their sales force. Finally, managers need to take corrective action when they find that their plan is not working to expectations. This may include changing objectives, but can consist of disciplinary actions for the sales force (ACCEL, 2008).

Goal Setting Theory

Setting individual goals is something that everyone employee understands. We may not understand an employee's personal goals that they set (monetary, pride, challenge) or an employee may be upfront about their individual goals. This is where we can take management planning a step further and begin to understand and implement the basics of goal setting theory. Goal setting theory is when we have specific goals that increase performance and motivation. Where goal setting theory comes into play is understanding how to increase performance and motivation through specific goal setting (Seigts, 2001).

Locke & Latham's Goal Setting Theory

·Set specific, challenging goals

·As difficulty increases, so does performance

·Constructive feedback is essential

· Incentives affect commitment & performance

(Seigts, 2001).

Achieving Results

Each company's sales force has the potential to achieve their goals and help the company accomplish its goals. There are a variety of ways that the sales force can be compensated, managed and motivated. The management plan can always be modified if the results do not meet expectations and there are motivational ways that can help the department. Overall, with the tools, techniques and theories available, the sales force department should be able to reach your company's expectations.

ACCEL. (2008). Employee motivation, the organizational environment and productivity. (2008). Retrieved December 6th, 2008, from http://www.accel-team.com/work_design/wd_03.html

Dessler, G. (2008). Human Resources Management. Upper Saddle River: Pearson Education Inc.

Seigts, G. H. (2001). Setting Goals. Ivey Business Journal , 40.