A good sales-person is one who possesses personality traits that is in their innate nature to interact with others. These are often difficult to teach but can be developed with time, depending upon the individual’s motivation to excel in their field of work. This forms the intrinsic motivation. However, the motivational tendencies of an individual sales-person alone are insufficient as it is also dependent upon extrinsic motivational factors. (Luke Ali 2011). It is a force that can spur or discourage an individual from achieving the fullest potential in any field. It can take the form of monetary or non-monetary benefits, which encompasses the extrinsic motivation of the sales-person (Luke Ali 2011). Knowing the fact that monetary incentives have been deeply entrenched as the basic method of reward for employees; it must not be assumed that relying on this method solely will be effective. Companies have to consider immaterial benefits to motivate its staffs. What is motivation? Motivation is to initiate action on a certain task. It is to expand a certain amount of effort on that particular task and to persist in expanding effort over a period of time. Therefore motivation is a driving force that pushes people to work, put in effort in their work and working harder than the rest. How to motivate your sales force to have great performance? It’s not just about the paycheck. Effective incentive compensation management is based on an understanding of basic human motivation—on the importance of trust, self-esteem, social recognition and improved chances to fulfill one’s potential (Bakosh 2007, 3).
Many people assume salespeople are motivated by money, and while this is largely true, it's absurd to think they are motivated only by money. Salespeople are still human and while commission bonuses and sales spiffs will probably remain an important part of most sales compensation plans, studies consistently show that financial incentives never have the same lasting impact as an employee who is passionate about his work and it is a simply not possible to be passionate about something that you think is inferior. Besides instilling natural passion into your sales team, a salesperson who truly believes in his product or service is far more likely to sell with integrity. Good teamwork is crucial to job satisfaction because it gives employees a sense of accomplishment when the objective is attained. Inspirational sales leaders are well aware that different individuals have different motivations and needs, and they vary their own style accordingly. An especially effective leader with consciously assesses each sales representative’s “ideal level of energy”, and creates productive “stretch” for each person according to the level of tension at which each performs at his or her personal best. He inspires some representatives mostly through positive reinforcement—“you can do it, you’re the best”—and others mostly through constructive criticism, each according to their individual profit le and preference.
A well-designed compensation plan is crucial for the success of a company, and must not be overlooked. It has the ability to motivate or de-motivate an employee. In truth, it is valid to imply that, in this context, an effective plan can inspire the sales-person to generate more revenue for the success of a sales company .Hence, when designing the plan it involves the consideration of multi-factorial elements (Growth Process Group 2011). Every step has a purpose and needs to be taken into account. The sales behaviour goals are often misinterpreted by organisations, hence resulting in the failure to motivate their employees. Lastly, the design guidelines encompass the classification of the job and its entitled incentives (Growth Process Group 2011). Compensation Plans
•Salaries are fixed amounts per month or year for performing a role. •Commission is a payment based on the value of sales...