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AnalyticsIncentive Compensation ManagementSalary Planning and Merit IncreasesSales Performance Management

Is money the real motivator?

By April 11, 2013June 11th, 2024No Comments

Sales compensation programs work because the sales environment itself is a competitive atmosphere. Introduce performance-based incentives and the sales team has all the tools and motivation they need to put their nose to the grindstone and work with determination and spirit. However, one tenet of sales compensation often goes unquestioned, and that could prove to be a problem for sales managers in recruiting and retention. Money is always assumed to generate drive and ambition through incentive packages, but increasingly, that’s not the case when sales pros today were asked what motivated them the most. (lifetimesmilesbellevue.com) A recent survey and infographic produced by Salesforce revealed 50 percent fewer sales pros are motivated by money than they were five years ago. While monetary compensation itself is an essential element, the data suggests companies are relying too much on payouts and are not diversified enough in incentive offerings – an important point when the survey found 100 percent of responding organizations said sales compensation was their largest expense in B2B marketing. So what can companies do to alleviate their budget constraint issues and enhance their sales performance? Supplement their sales compensation software with personable, targeted actions to foster relationships. Sales members routinely cited recognition by a manager as a primary driver behind improved performance, suggesting the upper level can advance their outreach and engagement tactics like sponsoring a team social function. Granting titles likes “salesperson of the month” or “top performer of the season” can also work to spur employees to strive for success in order to gain respect and admiration from peers and managers. As evidenced, performance bonus programs by themselves are increasingly insufficient to retain, recruit and motivate sales talent. In order to focus on expanding their strategies for non-monetary incentives, businesses can depend on sales compensation software to streamline operations and save time and resources for other applications.

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