Does Employee Rewards and Recognition make sense in a sales organization?
This is perhaps one of the most confusing questions faced by managers responsible for handling a sales team. The fact that most sales-driven organizations have a well-developed compensation and incentive program already in place for its sales executives makes things rather complicated. However, these incentives alone might not always prove motivating for the sales representatives, as they do not exactly acknowledge or appreciate the efforts and dedication of the executives – only actual numbers. On the other hand, appropriate rewards and recognition can help in keeping the sales team motivated, especially during the low sales months. Also, most organizations expect the sales executives to share vital market intelligence with the marketing teams that can help in tweaking the marketing strategy or even the product strategy. That is why a majority of sales organizations today are considering the option of creating an effective rewards and recognition program for its marketing team in parallel to the existing compensation systems.
Need to constantly motivate the Sales Team
Sales is one of the most important business processes as it directly impacts cash flow and provides key information about customer needs and expectations. In fact, it is the members of the sales team, who are on the front lines of any business and who represent the face of the business in the marketplace. In addition to facing constant competitive pressure, they also need to deal with the changing preferences and buying processes of the customers. All these factors tend to take a serious toll on the motivation as well as the morale and dedication levels of any individual. That is why it is the responsibility of the business organization employing these professionals to have an effective reward and recognition program for keeping them constantly motivated.
How a Good R&R Program helps
The most important thing that companies need to understand is that all activities of sales representatives are purpose-driven. Unlike incentives and bonuses offered to a sales team, focused recognition and rewards tend to be more effective as they tend to be more personal and memorable. By publicly acknowledging and appreciating the hard work and efforts being made by these professionals to nurture client relationships, collect information, share insights and collaborate helps in solidifying their purpose and reinforcing transparency. A small investment in employee rewards can provide exceptional returns in terms of increased market share and better customer retention thanks to the boost in the motivation of the sales representatives.
Important Factors to keep in mind
Having a great reward and recognition system in place for the sales representatives is essential for creating a truly prosperous organization. However, it is important to keep some key factors in mind while creating such a system that offers the desired results.:
Integrating R&R Programs with Compensation and Incentive Plans
Like with most other employees in an organization, a rewards and recognition program can go a long way in keeping the members of the sales team happy and motivated all year round. However, it is important to ensure that these programs are integrated with the existing compensation and incentive plans. Relying solely on either the compensation and incentive plans or just the R&R systems can only provide temporary benefits. Integrating the two is the only way to bring about a lasting change in the attitudes and behaviors of the sales representatives and enhancing employee motivation, dedication, and commitment towards the organization.
Ensuring feasible variety in the Rewards and Recognition
Most organizations feel that offering cash rewards along with a certificate of appreciation is the best way to keep the sales teams motivated. However, they tend to overlook the fact that such a system tends to become monotonous and boring after some time. In fact, the sales representatives often start comparing the regular cash rewards with the yearly bonus or incentives they receive from their employers. As such, it is important for the sales organization to ensure a feasible variety in the rewards and recognition being provided to the sales teams. This may be in the forms of tangible items, trips, and even gift vouchers that the sales professionals might find unique and appealing.
Recognize Both Individual and Team Efforts
Business organizations often commit the mistake of creating R&R programs aimed at appeasing only individual sales representatives or focusing only on the collective efforts of entire teams. Both these approaches can result in the failure of the employee recognition programs as they consider only one aspect of the overall sales process. In any sales-driven organization, the contribution of individual employees is almost as important as that of entire teams. Hence it is important to have a program that rewards and recognizes both individuals and teams as the case may be. This helps in promoting healthy competition between the members of the sales team while also encouraging them to work together as a single unit.
It is quite clear that a well-defined and properly thought through rewards and recognition program beyond the traditional sales incentive systems are essential for ensuring the growth and success of a sales-driven organization. Such a program can ensure a higher level of satisfaction and motivation of their sales representatives and deliver business impact well beyond just the sales numbers!