Reward & Recognize to Hit Company Objectives
“Reward & Recognition” is another vital component of the Complete Sales System. What I’ve found, however, is that most smaller companies have no idea how to do this correctly, and it is SO IMPORTANT. Rewarding and recognizing your sales team is paramount to getting what you want and what your company needs—and it isn’t all about money. Harvard Business Review shows “40% of employed Americans say they’d put more energy into their work if they were recognized more often.” http://bit.ly/2o6Yg9f what kind of results would your company drive if nearly half your staff did this?6 Considerations for A Proper Reward System:
- Your 1-year, 3-year and 5-year plans.
- Less compensation when they start and more throughout the year.
- Monthly, quarterly, and annual structures.
- Knowledge of your team.
- Overpay the best and underpay the rest.
I’ve seen too many companies put together a plan that has nothing to do with company goals, and then they try to course-correct by asking sales people to have different behavior than their compensation plan drives. This not only destroys morale but it will ensure the opposite results as well.So many companies make their reward system too complicated. For example, having four different quota buckets and/or paying different rates for different products. What might make sense in the finance realm doesn’t necessarily drive the right behavior. Overcomplicating can result in shutting the team down because they don’t understand how they get paid, and this drives mistrust between the field and the company.Know Your Team. Ask Them What They Want:You might be surprised—and why not give them exactly what they want? This doesn’t necessarily mean increased base pay. Often it can be as simple as a plaque or an AMEX pre-paid gift card. I’ve spoken with some team members who’ve said, “I don’t want a stupid plaque, I really just want an email from the top thanking me.” And I’ve had others who said, “I love plaques and want to put it in my cube with pride!” Neither of these cost your company much, but giving plaques to people who think they’re stupid, and providing recognition emails to those who don’t care will neither convey appreciation nor drive the behavior you want. Instead….Overpay your best people. Build your quota and business knowing that 70% of the team will hit their quota and 10% will significantly overdeliver and carry the company. Overpay that 10% and underpay the rest.Key Deliverables I Like to Build Out for Rewarding and Recognizing the Team:
- Compensation aligned with company goals
- Weekly, monthly, quarterly, and annual recognition recommendation
Doing this right will get you over the finish line; doing it wrong will crash you into the wall.If you’d like more help in this area, please reach out to me at www.gcestrategicconsulting.com . Stay tuned for the next article, which builds upon this one: “Tools & Systems.”