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Time Management: Why Sales Compensation Solutions Address Activity Prioritization
By David Loia,
January 17, 2017
With the onset of globalization, sales reps are now able to complete a wide variety of tasks each day. The increased flexibility has created uncertainty amongst sales representatives on which tasks have the highest priorities. One way to address this issue is to implement a sales compensation solution. A sales representative's to-do list can be incredibly overwhelming. With the dozens of tasks they are expected to complete each day, it is easy to fall into unproductive patterns. According to HubSpot, sales reps will attempt to compensate for their busy schedules by trying to multitask, which results in less productivity. Time management is critical and organizations must address issues head on to avoid employee disengagement. Sales compensation solutions tackle this issue by enabling the sales rep to clearly understand the tasks that yield the highest return to the sales rep and company.
Compensation management software helps sales reps plan
According to Insight Squared, a leading sales pipeline forecasting company, every portion of sales reps' days should be scheduled. This statement's validity is strengthened when you examine the daily activities of top performing sales representatives. This is another area where sales compensation software adds value to your sales team by enabling your reps to understand what activities convert to pay. By providing sales representatives with real-time visibility, the sales representative can quickly learn how to prioritize their daily activities. This is particularly important for organizations that pay on many different KPI’s. It’s no secret that people in sales are motivated by their commissions. When sales representatives are not hitting quota your organization is pinned against two unfavorable options.
- Churn/ Disengagement
- Missed Sales/Opportunities for the Company
Sales Engine, a company focused on optimizing companies’ sales engines, emphasized the importance of scheduling. The company goes on to stress the importance of scheduling activities, even if the ROI is unknown. Fortunately, solutions offered by companies like Iconixx, can address the unknown ROI issue for the individual sales rep, and enable them to optimize their scheduling process.
Sales reps can focus on selling, not shadow accounting
Sales reps are motivated by their commissions. When a sales rep does not have a clear vision of his/her earning potential, he/she will use time creating a vision. This practice of “shadow accounting” involves the rep manually calculating “what-if’s” based on the information they have in their compensation plan. Organizations that implement a sales compensation solution eliminate individual shadow accounting. Furthermore, organizations that have eliminated this task have effectively added more fuel to their sales engine by allowing their reps to focus on sales. It is important to note, that implementing a sales compensation solution adds value beyond the individual sales contributor. Higher levels of visibility allow management to focus on tactics/motivation, allow finance to drill insights from commission payout, and enable sales operations to optimize the organization’s sales process. If the vision and incentives are clear then the employees, your organization wants, will create the path. The disengaged employees, your company does not want, won’t.