Study Sales Force Before Making Salary Changes
When an organization discovers a sales motivation issue, their first reaction is usually to throw more money at it. More commissions and less salary
are one frequent fix, according to sales development expert Dave Kurlan.
However, this quick fix rarely solves the issue, since a study of the salesforce would likely find that they are not money-motivated. If these salaried sales folks were money motivated, they would not be working for a fixed salary. So a company that lowers salary and increases commissions, may cause sales people to bail. Is it OK to lose them?
Kurlan says, “Perhaps! While the company may feel that some of these people have product, application or market expertise that can’t be replaced, there are others that would certainly be worth trading in for salespeople who are focused on growth.”
Modifying sales compensation plans without first studying the sales force will lead to lower morale, increased turnover and none of the increased sales goals that management hope for. Identify the real issues with your sales force before making any compensation changes. Your bottom line depends on it!