A recent study showed that 84% of sales incentive programs are failing to motivate employees. More often than not, the reason is that they’re poorly designed and implemented. Ideally, you want your incentive plan to be a win-win for all parties involved — both the company and the employee. Here are 7 ways to help avoid common mistakes when designing and implementing sales incentives plans:
1. Make sure it works as intended
The most important thing is making sure that your program will work as expected. Yes, this seems obvious but people tend to make assumptions about how things should work without actually testing their theories first.
2. Catch errors early
You don’t want an error in your calculations to go unnoticed until after you have paid out rewards based on a bad number so always double-check everything before finalizing any data or numbers related directly or indirectly to payments made under one of these programs
3. Have proper documentation
If something goes wrong later down the line surrounding verification documents such as receipts or invoices then there must be records available which support claims made
4. Use more than one source
It can never hurt if companies try using multiple sources for information when determining payouts
5. Make it easy for everyone
As much as possible, make sure that everyone who may need information has access to everything they need
6. Determine what motivates individuals
Some people feel motivated by receiving money while others prefer other types of recognition so know what drives each individual person with whom you do business
7. Don’t leave anything up to interpretation
This means putting things in writing where possible since misunderstandings happen from time to time
With Elevate, you can plan, design & manage both commission plans as well as quota-based plans with the utmost ease.
Elevate aspires to bring transparency in sales compensation. Sales reps can view all details regarding their commissions’ payout, quota attainment & revenue goals. Leaders can track the performance of every team member, manage product-based & territory-based revenue targets.