S
o, it falls to reason that one of the skills behind managing people really
well means understanding the key things that matter to each individual
in the team. And then judging when to use a financial incentive such as
a bonus or commission, and when a please and thank you will mean just
as much to a person.
It is easy to assume that all salespeople are driven by earning more, but don’t
omit other considerations such as job satisfaction, relationships with colleagues
and other less material benefits, when considering how to keep people happy
and content within the business. Job security, for example, can be crucial to
many – knowing the company is sound, cash rich and stable is very important
to many employees, especially those with families and bonds to pay.
Financial rewards
Specifically for salespeople, bonus normally plays a large part in most salary
packages, so time spent planning and implementing a good scheme that works
for all parties is time well spent. First and foremost – ensure the targets you set
are achievable. Basing part of an employee’s salary package on a target they
cannot achieve is neither motivational nor practical, and will not engender trust
between either party. Targets must be based on reality, unless they count for such
a small proportion of the package that they are irrelevant from a motivational
viewpoint, and even then, they need to be realistic for business reasons!
Beware of paying commission purely on sales. If you don’t have strict controls
in place to proactively manage estimating and discounting, plus rules regarding
credit facilities for customers, you risk salespeople selling jobs for what they can
get simply to earn their commission. I much prefer a bonus scheme based on
margin, activity and new business won, than that of a commission scheme.
Set up well, it can encourage proper commercial thinking by your sales team,
encouraging them to put the business first, rather than their next pay cheque.
Long term strategy versus short term thinking – I know which I prefer every time.
Unlimited potential
Also – never ever put a ceiling on any bonus scheme. Doing this removes any
incentive for people to keep going and keep selling – once they have reached
their maximum potential for that month or quarter, they will start sandbagging
for the next period, keeping orders up their sleeves until the start of the new
month. If they are selling work at the right price and bringing in the right margin
for each job, bringing in work that can be done in your factory therefore, keeping
outsourcing costs to a minimum, then writing the bonus cheque each month
should be a pleasure, not a chore.
It is also motivational to individuals if you not only reward achievement, but also
outstanding achievement. This can be as simple as a thank you and a pat on the
back, to more extravagant gestures such as additional bonuses, weekends away
with their partner, theatre tickets etc. Little things can go a long way. Don’t
underestimate the impact that even small gestures can have on peoples
day-to-day contentment levels.
Feeling appreciated
In terms of practical activities, once the reward scheme is taken care of there
are many additional things you can do to make your people feel appreciated and
valued, many of which have the useful added benefit of building their skill set.
Try some or all of the following:
Support them on customer visits – it isn’t about checking up on them. If you have
to do that all the time you need to think about whether you have employed the
right people! It’s more about helping them achieve better results by learning and
improving their performance
Don’t let them go to big meetings without talking through their strategy first. It
needs to be aligned with the company ethos – test their understanding of what
they are saying before letting them loose on the customer
Practice presentations with them so they are word perfect
Run an eye over any slide decks being presented – making sure they are
professional, factually correct and in keeping with the company style
This kind of internal training and coaching is, in itself, motivational – people like
to feel they are growing and developing in a role.
Also ensure they have the tools they need to do a good job and look the part
when in front of customers – a lightweight laptop or tablet, smartphone and
some applications to support them when showing pricing for example, seem
obvious, but are often lacking in reality. They need to come across as
professional business people in all instances to reflect well on your company.
Also make sure you support salespeople with a strong production and estimating
team sitting at their shoulder and helping them. Don’t have them doing their own
pricing or creating job bags and internal paperwork. They should be in front of
customers as often as possible. If they aren’t, their figures will fluctuate month
to month. Also, try not to tie them up in long sales meetings as this can often
be counter-productive. Instead, spend time with them on a one-to-one basis
regularly, then perhaps just a quarterly get together with the whole team
will suffice.
And finally, lock your really good people into the business and make sure they
never want, or need, to look elsewhere. Share schemes and ownership of
projects are both great motivators. After all, everyone needs to work for their
future not just that of the company owner.
Good luck!
About Jo Lloyd.
Jo Lloyd is a UK printer working here in South Africa. An integral part of Canon’s
Essential Business Builder Program (EBBP) she spends a lot of her time travelling
throughout Europe, the Middle East and Africa helping Canon’s customers get to
grips with new technology. She is, however, less interested in the process of
putting ink (or toner!) on paper
–
and more in the
way in which the print company should promote
this process to their customers. In these days of
cross media alternatives and shrinking budgets,
printers have to shout ever louder to be heard.
Her background as a print company owner and
Sales Director in the UK means she is ideally
placed to understand the challenges faced by
today’s printing companies – and to find ways
of overcoming said challenges.
Jo Lloyd
I
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