A recent survey by Alexander Group and WorldatWork, found that just 41 percent of companies use a combination of individual and team measures in their sales incentive programs.
Business leaders know that a well-functioning team can boost the performance of an entire company, but few organizations are using team-based incentives when it comes to their sales teams.
A recent survey by Alexander Group and WorldatWork, found that just 41 percent of companies use a combination of individual and team measures in their sales incentive programs. Those companies that do use team measurements place more weight on the value of individual performance. This strategy is helpful in encouraging employees to accomplish individual goals, but can be disruptive if such measures conflict with team objectives.
“Team incentives are best used when the team members must coordinate sales efforts with each other,” explained David Cichelli, survey editor and senior vice president of the Alexander Group. “Sales personnel who collaborate should be rewarded for team performance and the incentive weighting should be balanced between team and individual performance accordingly.”
Businesses could see stronger results from their employee reward programs if they give additional weight to team performance. This could encourage cooperation and smooth communication to help streamline procedures and improve customer satisfaction by providing a seamless sales experience. The team-based approach allows for the development of specialists within the sales department, which can increase staff knowledge levels by encouraging them to delve deeper into an area that interests them. Creating additional engagement among workers generates a higher energy level within the department and can help provide friendly and professional service.
Companies may encourage the development of specialized roles and improve teamwork by altering their sales incentive programs to include more team-based rewards. The division of knowledge can be supported by a more cooperative and streamlined sales process that may boost closure rates and drive revenue. Using team-based incentive programs can help create a more cohesive culture within the department, generating more consistent performance each time.