Sales Force Motivation: How to Reward a Sales Team to Achieve the Best Results

For a sales team to perform effectively, it is important to motive each member of the team. Motivation strategies can be monetary or non monetary.

Monetary Rewards

The main monetary reward for a sales team member is salary. This is the constant amount of money paid monthly for the sales person’s performance. Apart from salary, the sales member may also be given some incentives to motivate him/her. Such incentives should be significant motivate the sales team member. One of these incentives is sales commission. This is one of the most important additional incentive that the can motivate a salesperson to perform better. The sales commission may be any percentage of the total sales that a salesperson achieves. The percentage of the commission depends on the profits made by the company.

Commission is a very effective monetary incentive used to motivate a salesperson because it enables the salesperson to work hard because the more the sales value of the salesperson, the more the commission he/she gets. The commission is effective in driving sales because it motivates the salesperson to put in more efforts in the sales process.

Another type of monetary incentive that can be offered to a sales person is individual bonus. This is given as an additional monetary incentive when the sales targets are over-achieved (Miller, 2009). In this case, the sales person will always be motivated to exceed the sales target in order to attract individual bonus.

There are also other performance related payments which are given when the salesperson achieves the strategic objectives of the business in relation to his/her sales targets (Miller, 2009). For example, if a salesperson’s sales efforts lead to penetration into a new market he/she may be remunerated in monetary terms depending on the expected value of the new market.

The amount of monetary remuneration to be provided to a sales person depends on the complexity of the sales job, technical know-how, ease of getting salespeople, standard performance required, level of responsibility, and the market rates for salespeople.

Non-Monetary Rewards

Monetary remuneration may be an important way of motivating salespeople, but it is not the only motivation method. A salesperson may also be motivated through pension schemes, insurance, work-life balance, holidays, free training, and family support. According to the needs theory of motivation, human needs are satisfied in and hierarchy starting with the basic and psychological needs at the bottom level. These lower levels of needs are mainly achieved through monetary motivations (Miller, 2009). However, the Hygiene Factors theory by Herzberg suggests that motivation is achieved only when the high-level factors are satisfied. The motivation factors for these levels are mainly non-monetary including potential for achievement, responsibility, advancement, recognition, and better conditions of work.

Training and development are also important motivation factors for the sales team member. A sales team member always wishes to work in high-performance and flexible sales environment with a lot of opportunities. This is possible if the sales team member is provided with training and development (Jobber and Lancaster, 2009). However, the cost of such training may hinder the salesperson from achieving his/her dream. Therefore, the sales management should provide such a sales team member with an opportunity to get free training and development. Through training and development, a sales team member gains relevant knowledge and skills to enhance his sales performance, earn more commission, and probably advance in his sales career. This will also benefit the company because the sales knowledge and skills of the team member will enable him to work effectively with other team members to achieve the organisation’s sales objectives.

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