Author: Lizzy Wolff
The sales compensation process can be a difficult thing for business leaders to understand. At the same time, gaining a grasp of this talent management resource is essential for promoting better performances and engagement in corporate representatives. By pushing people to give their all, organizations can bring in more revenue and improve relationships with target customer audiences. Getting to that point should be a goal for all sales leaders.
Knowing the basics
There are increasing difficulties in gaining a grasp of the sales compensation environment, as Enterprise Regulars noted. The source pointed out that there are a variety of new assets available to businesses in terms of engaging staff members and boosting their motivation. Things like big data, business intelligence and analytics are all essential tools for understanding how personnel act, what makes them happy, when they're least likely to be productive and the kinds of topics and environments that give them trouble.
Taking these types of feedback and applying them to the incentive compensation landscape can help businesses better encourage their employees to rise above basic expectations and strive for excellence. The source indicated that automation and agentless monitoring have come a long way in empowering the sales compensation process, allowing managers to focus on the individual in a more organic way while still backing up their decisions with hard facts. These metrics also assist personnel in reviewing their own performances, seeking coaching opportunities and challenging themselves to meet enhanced standards.
What's more, the core of incentive compensation in the sales division is to reward people for their hard work. Instead of just making people's progress and activities more visible to the rest of the organization, handing out rewards, accolades and special treatment to those who rise above the rest pushes people to work harder and present better performances.
Understanding the outcome
There are those firms though that persist in not implementing sales incentive compensation, and in those environments, it may be more likely that corporations will see enhanced disengagement and turnover rates in key positions. Inc Magazine reported that the death of a company can often be foretold by its lack of innovators, so failing to retain the best and brightest talent could have a substantial impact on the longevity and success of an entire business. For those reasons, the source stressed that it's important to offer dynamic and appealing incentive compensation management as a means of enticing better performances while also reducing the chance of losing star talent to rival corporations.