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If there is one common denominator in successful businesses, it’s the presence of exceptional sales people. After all, regardless of how great a product or service may be, without someone building long-term relationships, managing the sales process, and ultimately closing business, any organization will fail.
The question becomes: How does one attract and keep exceptional sales people? One of the greatest contributing factors boils down to one thing and one thing only: how organizations implement and manage Sales Compensation Management. And though that may seem extreme in that one factor can mean so much, it’s also highly representative of how a company is perceived as a whole—representing the entirety of corporate culture.
Whether it’s attracting or retaining sales talent, corporate culture is at the epicenter of the equation. For instance, as sales people search for their next opportunity, they want to be assured that the company has a corporate culture that is supportive of their personal needs, enables them with the tools to do their job, and to ensure they are compensated accordingly—including being compensated accurately and on time. Conversely, the accuracy and timing of compensation is also directly related to losing good sales people as timely and accurate payments directly impact their personal lives, family, and so on.
Therefore, if so many good sales people rely on an efficient Sales Compensation Management process, perhaps it’s time for companies to invest in their own processes to bring about a multitude of positive outcomes.
For example, first and foremost there is sales compensation. Ensuring that sales people are being paid their compensation in a timely manner—all through a well-managed process—results in an immediate feeling of appreciation and will lead to far better employee / employer relationships.
It also keeps any ambiguities from souring the relationship between sales people and the organization. Aside from being paid on time, ensuring accuracy in payments is paramount. Far too often, the number that an employee has calculated may be vastly different (and higher) than what the company has calculated. Good Sales Compensation Management keeps all the confusion at bay and ensures that the compensation plan is simple and clear—designed to reward employees for their hard work.
Furthermore, good Sales Compensation Management ensures that frequent feedback to sales personnel is provided, which can also translate to rewards programs, bonuses for reaching and exceeding sales goals, and more—helping the company develop and promote desired behaviors. Not to mention, it can also help align individual goals with corporate goals and targets.
But there is far more benefit to Sales Compensation Management than just payments. The culture that is created by enacting good process also leads to the ability to manage the realties of market change: impacting sales people in a positive way as opposed to creating the potential for stress or even panic. By leveraging effective Sales Compensation Management, organizations can study and analyze market changes carefully before employing them within the company—ultimately, maintaining sales focus.
In all, these benefits lead to two distinct outcomes: far lower attrition rates and far more corporate success. It’s no surprise that studies continually show there is a link between compensation plans and attrition rates—the major contributing reasons why a person leaves a particular sales position are compensation issues. Conversely, the happier sales people are, the harder they work.
The result of good Sales Compensation Management is a happy and satisfied team of sales workers and a successful, growing business.