As a sales manager, one of the most challenging parts of your job is making sure the sales team is properly compensated. Debate all you want about what really motivates salespeople—money, work-life balance, etc.—the fact is that everyone wants to be paid what they’ve earned. If salespeople aren’t paid correctly and on time, you’ve got a big problem. When they are, you’ve got a team that’s collectively focused on reaching their goals.
Here’s how you can benefit when sales comp is done right:
Sales Reps Know Where They Stand
Sales professionals perform better when they know how they’re being compensated at this moment, not a month in the past. Give them instant access to their numbers and they’ll give you their best sales performance.
Error-free Data Lets Sales Reps Focus on Selling
A compensation plan based on a simple spreadsheet is prone to a 3-8% error rate. When sales reps don’t trust the system, they spend valuable time tracking their own commissions—time that could better be spent selling.
Easy, Logical SPIF Tracking and Payouts
Do you provide special performance incentive funds (SPIFs) for reps who sell specific products or services? It’s crucial that your sales force can track those sales in a timely manner—especially if the SPIF period is short.
Answers to “What-if” Questions
With a spreadsheet-based compensation plan, your sales reps are likely in the dark about how to improve their take-home pay. An automated sales compensation application gives them the tools to figure out what they need to do to make more money and then go do it. Meanwhile, you’ll gain visibility to optimize sales performance.
Reward Top Performers and Identify Bottom Tier Performers
Accurate, accessible information lets you stay on top of your team’s performance and respond appropriately. Check out these tips to better assess your team. You’ll reinforce what your superstars are doing and quickly identify and help reps who are struggling.
Have you implemented a sales compensation solution in your sales organization? I’d love to hear how it went in the comments below. Circle back next Tuesday, when I’ll discuss the impact of sales comp done right for your compensation analysts.