Does your sales team receive commission? Do you think that is enough to motivate them into higher performance?

You might be surprised to find out that a study at M.I.T. demonstrated that if a task requires complex thought, money is not quite the motivator we thought it was. In fact, significant monetary rewards can actually have the opposite effect than what we would expect.

Furthermore, how do you align your sales incentives with your company priorities? Some companies don’t even realize that they are incentivizing behavior that works against the organization’s overall goals. For instance, one client we helped paid commission on revenue generated for the month. The business owner assumed that his company’s goals and the sales rep's goals were in perfect alignment due to simplicity of the company commission structure. What the company did not see is that because sales reps were paid on revenue and not profit, they had no desire to protect profit margin and often sold into deals that fell below the minimum margin requirements. Overtime, the sales team was generating a lot of revenue, but had a trend of continually shrinking profit margins.

At Empire Sales Strategies we help organizations come up with transparent, measureable, incentive plans for sales teams that drive behavior and align with your P&L statement. However, we also help you evaluate motivators and incentives that are non-monetary which can have an equally large effect upon the behavior of your sales staff.