Many managerial decisions are made based on a manger’s opinion. A sales manager may promote certain employees above others or assign sales territories according to personal preference rather than hard data. These choices seem relatively inconsequential in the moment, but failing to consult data before promoting a member of your sales team can have far-reaching implications.
Because sales is a competitive field, and compensation hinges on personal performance, employees will interpret managerial decisions that do not incorporate performance data as a slight. Rather than dealing with the fallout from an ill-considered decision, managers should invest in compensation management software that provides deep insight into employee performance.
A mutually beneficial system
According to research from Aberdeen, companies that incorporate sales assessment solutions are more likely to have sales teams that meet or exceed their quotas. That’s because managers at these companies are able to match salespeople to the specific roles where they will excel.
“Compensation management software allows managers to intelligently assign salespeople.”
That’s good for employees, because it allows them to hit their goals and receive the appropriate compensation. It also helps the organization as a whole, because every sales team becomes more efficient.
The transparency provided by compensation management is also very useful for maintaining morale and employee performance.
Employees understand their place
Without comprehensive assessment tracking, employees may not know how they can improve. That can be frustrating, and may leave employees feeling unsure how to progress. In a piece for Entrepreneur magazine, contributor Lindsay Broder recommended individuals passed over for a promotion evaluate ways they can improve at their job.
Assessment tracking allows these workers to see where they have fallen short, and it helps them develop a plan to improve. That minimizes workplace frustration and allows employees to make strong decisions that benefit the entire company.
