We all want to better engage with our staff. Recent figures from the USA suggest 32% of all US Employees are disengaged. When we consider this impact on the Revenue Workforce, this can be quite detrimental to the growth of the business. Let’s explore three strategies that could help you better engage with your revenue teams.
The same adage can be applied to Incentive Compensation Plans. This seems an obvious ‘no-brainer’ but you would be surprised how complicated these plans can become. If you over-complicate, you are in danger of ‘losing the team’, creating resistance or apathy, with the later more damaging [you don’t see the issue until it’s too late]. Of course, you need to build plans in a way that protects the business in the event of poor performance, while also rewarding the strong performers - it’s a delicate balancing act, which can indeed create the complexity. However, always put yourself in the shoes of the recipient. Sense checking with the ‘feet-on-the-street’ always helps.
1. Easy to Understand Incentive Plans
“I apologize for such a long letter – I didn’t have time to write a short one.”, Mark Twain.
These team members are still contributing - ‘All-or-nothing’ incentive structures will not work. Tiered Commission models are a great way to cast the net wide, but also ensuring you’re not overpaying for under-target earnings.
2. Tiered Commission Models
According to Salesforce Research [State of Sales, 2018], “57% of Sales Reps expect to miss their quotas within this year”.
These team members are still contributing - ‘All-or-nothing’ incentive structures will not work. Tiered Commission models are a great way to cast the net wide, but also ensuring you’re not overpaying for under-target earnings.
Tiered commission models can also help you reward the high-performers at the other end of the scale by increasing their commission multipliers [payout rates] as they exceed their targets in that period. There are many ways to leverage these tiered structures for optimum results that suit your business economics.
A high-trust culture is hugely important to attracting and retaining millennials. Considering this key pool of talent, receiving a payslip at the end of the quarter with one number stating commission earned won’t cut it. Passing them manual spreadsheets? Maybe – but a spreadsheet will accept any number you give it – so a lot of room for mistrust there. They’ve been brought up in a digital age so that’s the best way to engage.
3. Building a High-Trust Culture
Millennials will make up 75 percent of the workforce by 2025 [US Bureau of Labor Statistics].
So, from a revenue performance perspective, show them:-
- Real-time compensation progress, with drill-down access to deeper insights.
- The ability to challenge incorrect payments, online.
- Detailed compensation plans for the year ahead, electronically.
- Artificial Intelligence insights to help them focus on their best opportunities.
These are just some of the ways to better engage, but in the Age of the Customer, make sure you continue to serve your internal customers also – the Revenue Workforce.