Most sales-driven organizations already have well-developed incentive programs for their sales executives. However, these incentives alone might not be enough to motivate the sales representatives, as they do not acknowledge or appreciate their efforts and dedication.
On the other hand, appropriate rewards and recognition can help in keeping the sales team motivated, especially during the low sales months.
This is why organizations today are considering creating effective rewards and recognition programs for their sales teams in parallel to the existing compensation systems.
Sales is a critical business process as it directly impacts cash flows and provides vital information about customer needs and expectations.
The front-line sales team of any business is the face of the organization in the marketplace.
Apart from managing constant competitive pressures, they need to understand the changing preferences and buying processes of customers.
These factors tend to put tremendous stress and impact the morale and motivation of members of the sales team.
This is why organizations should have effective reward and recognition programs to keep them constantly motivated.
The most important thing that companies need to understand is that all activities of sales representatives are purpose-driven.
Unlike cash incentives and bonuses, focused recognition and rewards tend to be more effective as they are perceived to be more personal and memorable.
Publicly appreciating their efforts in nurturing client relationships, collecting information, sharing insights, and collaborating with other team members can drive their motivation to new levels.
Investment in employee rewards can drive sales representatives towards growing market share for the business and better customer retention.
A great employee rewards and recognition program for sales representatives is essential for creating a successful organization.
However, it is important to consider certain key factors while creating such a system that offers the desired results:
1. Integrating Rewards and Recognition Programs with Compensation and Incentive Plans
2. Ensuring Feasible Variety in the Rewards and Recognition
3. Recognize Both Individual and Team Efforts
Like other employees, rewards and recognition can help in keeping 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 can bring about a lasting change in the attitude and behavior of sales representatives.
It would also enhance employee motivation, dedication, and commitment to the organization.
Most organizations feel that cash rewards along with certificates of appreciation are the best way to keep sales teams motivated.
However, they tend to overlook the fact that such a system tends to become monotonous and boring after some time. The sales representatives often start comparing the cash rewards with yearly bonuses or incentives they receive anyway.
Hence, sales organizations need to ensure a feasible variety in the rewards and recognition for their sales teams.
This may be in the form of gadgets, holidays, or gift vouchers that the sales professionals might find appealing.
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 might not work 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.
This helps in promoting healthy competition between team members while also encouraging them to work together as a single unit.
A well-defined and properly thought-through rewards and recognition program is 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 sales incentives!
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Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of experience in the corporate world and entrepreneurship. In the past, Sagar has worked with companies such as Genpact, Infosys, and ICICI Bank, in leadership roles. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn
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