Picture this scenario: it’s the end of the year and your sales team is not on track to reach their goals.
You have two options -
1. Inform your team that anyone not meeting quota will be under review (ie, punish them).
2. Tell your team that those performing above and beyond will receive an incentive - followed by the implementation of a year round employee engagement program (ie, motivate them)
Do Incentives Work?
When looking at an employee incentive, motivation or engagement program, the question on everyone's mind is, "Is this really going to work?"
Studies have shown that incentive programs correlate with an increase in productivity and an impact on organizations' bottom lines. Not to mention "side effects" such as lowered absenteeism, improved customer loyalty, lower turnover - and more.
(We like the sound of those side effects)
How To Implement a Sales Incentive Program
Building a program that will reward specific behaviors (such as an increase in converted sales) will serve to reinforce the goal of fulfilling sales quotas or reaching milestones. Additionally, sales programs that use elements of gamification will ensure that members of your sales team are excited and therefore participate in the program.
Determine the specific behavior or outcome you want to achieve. Some examples:
- Increase in YOY sales (make sure you specify that percentage)
- Number of conversions within a time period
- Communicate the goals
- Group meeting
- Publicly posted in the office
- Embrace gamification
- Turn it into a competition
- Maintain a leaderboard throughout the push to show who’s currently on top
- Make the reward something they want. Trinkets and prank gifts are a thing of the past. To get the best results possible, the rewards have to be something they actually want. E2 recommends their digital debit card as an easy solution to this – participants are able to redeem for anything they want, any time.
Also, don’t forget that the best sales incentive programs are run in tandem with a great employee engagement plan. This creates a working environment across all departments that focuses on communication, participation, fairness, goals and unique rewards and recognition.