Developing motivational rewards - Sales Management

People being human need to be rewarded and encouraged for their endeavors. A number of researchers have investigated the link between motivation and reward .Traditionally in most markets salesperson shave a significant portion of earnings from bonus incentive schemes. It is important that sales incentive scheme is designed to motivate increases in sales effort and productivity,and not just to be earned automatically.

Sales managers should recognize that:

  • financial rewards and incentives satisfy only some of the salesperson’s personal needs
  • marginal increases in productivity motivated through financial rewards may cost more than motivational alternatives(such as product knowledge and skill training, praise, recognition, promotion,feedback counseling and appraisals, and good internal communications).

Incentives should not be looked at in isolation, but as part of the overall rewards and benefits compensation package used to recruit, retain and motivate the sales team, and also be considered in relation to the other non-monetary rewards from the job and working environment.

The sales compensation programmers provide:

  • security of income sufficient to meet everyday lifestyle needs
  • flexibility to motivate through merit and incentive schemes
  • a responsiveness to changes in the jo band product market place.

In each market environment the local sales manager should look at a total rewards scheme in relation to the factors in Table ,i.e.:

  • team and individual performance standards and objectives
  • individual expectations
  • relative values of tangible and intangible rewards.

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