A well-crafted bonus scheme provides you with a unique opportunity to reward performance in an affordable way. But what’s the secret behind designing a scheme that motivates the right performance in your staff? I’ve helped a number of clients align their bonus schemes to organisational goals and performance metrics – here are my tips guaranteed to get you on your way to building a successful and motivational bonus scheme.
1. It’s more than just financial
Your measures should include more than just the financials. Of course they all need to relate to company objectives but these could be customer satisfaction, sustainability, team collaboration and process efficiencies.
2. Unlock the maximum selling potential
The mechanics of the scheme should unlock the maximum selling potential by increasing the reward as thresholds are reached and targets are exceeded. Set them at an appropriate level, challenging but achievable. Remember to think about where you set the minimum threshold before it pays out.
3. Generate buzz
Camaraderie and creating excitement around the reward make it more engaging and fun, helping to drive performance.
4. Consolidate your processes
Put in place processes to minimise or avoid changes – as soon as the tinkering starts, the scheme’s fairness is undermined. It goes without saying, make sure the scheme doesn’t fall foul of relevant legislation and regulation.
5. Sales efficiencies
Provide the opportunity to allow more experienced or eager staff to train colleagues, share knowledge and be involved in improving the sales process from start to end. Share the insight and involvement in the use of sales data, forecasting and setting appropriate targets going forward.
6. Seek out regular updates
Dedicate time to find out how the sales team are getting on and if there are any problems that need to be addressed now. It’s an opportunity to talk about their future, where they are going with the company and where the company is headed over the coming months. It will also give you real and relevant insight into how the bonus scheme is being received.
7. Celebrate success
Recognise milestones that are achieved, for both extraordinary effort and a general job well done.
For help unlocking the potential of your sales team call Innecto on 020 3457 0894
For more ideas on sales bonus read ‘Foundations of a motivational bonus scheme’
