Managers can properly motivate their teams by creating a mix of rewards.
Businesses have a lot of options when creating a sales incentive program. One common strategy is to reward the best performer with a big prize that will encourage competition among members of the team.
The big reward can help to create an environment in which the sales staff pushes each other to perform better. However, it can also lead to decreased motivation for team members that are too far behind to win. To address this problem, some managers will reward employees upon hitting specific milestones.
The milestones create a more consistent recognition program, but can be expensive as they require more bonuses for larger staffs.
Each performance-based sales incentive program has its own challenges and obstacles, particularly when it comes to individual merits. However, managers can properly motivate their teams by creating a mix of rewards.
“You need to be able to track it, you need to be able to measure what the individual is doing, and it has to be done in a way that is consistent with good management practices,” Paul R. Dorf, managing director of Compensation Resources, told Compensation BLR.
A solid incentive program will enable teams to measure performance against their goals. Utilizing an online incentive platform and its management tools can allow executives to provide up-to-date sales information to the entire team. By allowing open and honest comparison, organizations can encourage better performance from the entire team. The tracking process can also let staff know what areas they need to improve. With the right sales incentive programs businesses will be able to see strong improvement in their entire workforce.