Methods of material motivation of sales department employees
Posted: Mon Jan 20, 2025 4:03 am
Motivating sales department employees is a great tool for increasing revenue. But be prepared to share this profit with employees in the form of bonuses and awards. When employees know that they are entitled to additional payments for exceeding the plan, they will go out of their way to achieve this.
Traditional motivation model: Salary + Percentage of sales
This is the most popular model, which implies that the employee has a fixed salary (usually not an astronomical sum, paid to him even in the absence of sales) and some percentage.
The idea behind the traditional scheme is to sell as much as possible to make as much money as possible.
Its advantages are as follows:
Simplicity, clarity and transparency. Possibility the benefits of using our teacher database of simple calculations according to this scheme. Clarity for managers – they always know for what and how much they can earn.
The manager can independently regulate the amount of his income.
Types of motivation for the sales department
There are also disadvantages, and there are quite a few of them:
There is an unfavorable form of competition within the team, in which the manager working with large clients receives a higher salary than the rest, which can lead to conflict situations in the department.
Lack of motivation to expand the customer base: the manager limits himself to working only with existing consumers in order to achieve planned indicators.
Lack of solidarity in the team: department specialists are most interested in their own achievements, do not strive to improve the company's performance indicators and do not show interest in helping colleagues.
Lack of consideration of seasonal fluctuations: during periods of low demand, salespeople's wages are reduced, which negatively affects their motivation.
Concentration of sales on expensive goods, as managers expect to receive a larger bonus for them. Low-cost products may remain unsold and lie in the warehouse.
Fixed rate + Percentage of plan fulfillme
Traditional motivation model: Salary + Percentage of sales
This is the most popular model, which implies that the employee has a fixed salary (usually not an astronomical sum, paid to him even in the absence of sales) and some percentage.
The idea behind the traditional scheme is to sell as much as possible to make as much money as possible.
Its advantages are as follows:
Simplicity, clarity and transparency. Possibility the benefits of using our teacher database of simple calculations according to this scheme. Clarity for managers – they always know for what and how much they can earn.
The manager can independently regulate the amount of his income.
Types of motivation for the sales department
There are also disadvantages, and there are quite a few of them:
There is an unfavorable form of competition within the team, in which the manager working with large clients receives a higher salary than the rest, which can lead to conflict situations in the department.
Lack of motivation to expand the customer base: the manager limits himself to working only with existing consumers in order to achieve planned indicators.
Lack of solidarity in the team: department specialists are most interested in their own achievements, do not strive to improve the company's performance indicators and do not show interest in helping colleagues.
Lack of consideration of seasonal fluctuations: during periods of low demand, salespeople's wages are reduced, which negatively affects their motivation.
Concentration of sales on expensive goods, as managers expect to receive a larger bonus for them. Low-cost products may remain unsold and lie in the warehouse.
Fixed rate + Percentage of plan fulfillme