They say sales incentives really motivate people. Employees see incentives as a component of their overall sales compensation. Sales incentives work to achieve the desired effect when they are provided justly and fairly. There is no room to go wrong here. While commissions are the most common form of incentives, there are some other incentives that your sales force may benefit from.
The sales incentives should be exciting enough to motivate the entire force to change their behaviors for the best. Here are certain things that will help you understand sales incentives properly and whether or not you are doing it right.
1. Experience Incentives for Sales People
For some people, experiential incentives matter more than purchases, because of the varying human nature. An experience incentive stimulates sales on several levels. Employees work to get a reward which they may be able to enjoy with their spouse or family, such as going on a vacation with them.
At times it becomes more desirable if the experience involves company executives and sales managers. There are experience incentives such as day outings to resorts, movie night, shopping and many more. In order to come up with the most effective incentives, you need to look for employees’ interest and what they desire. Before providing incentives to them, it is better if you have a one on one communication with them and ask their preference for the incentives (if you provide different forms of incentives).
2. Tangible Incentives for Employees
Tangible incentives can come under the category of luxury and can also be cost effective. This kind of incentive can really prove to be motivational for the employees. The true secret lies in choosing an incentive that the members of the sales force would love to have and are interested in. So, you would need to consider the profiles of your salespeople.
Moreover, for a team which requires maintaining business formal dress code, providing them with tailored suits as an incentive would be a good option. Some of them may like to upgrade to a big LED screen to enjoy HD movies with their loved ones. Two of the most luxurious benefits are to provide them with a nice place for residence or mode of transportation. Most of the sales people find tangible incentives really valuable, but you need to make sure they really desire it or not.
3. Job-related Incentives
Apart from the specified incentives, this is one of the most common and least expensive forms of incentives a company gives to their sales force. These are usually non-tangible benefits such as commissions, bonuses and others. This type of reward can establish a long term employee satisfaction. Also, for those employees who prefer monetary incentives, it will definitely have a positive influence on their behavior and productivity.
CallidusCloud is one of the best firms that provide companies effective compensation management for sales and sales incentives for employees. For more details on commissions, visit the commissions website or you can schedule a meeting with our compensation experts today!