This makes it seem worthwhile for them to work harder to achieve any sales goals while also receiving more compensation for their efforts.Įncourage staff to sell high-profit items Even better, your sales team might prefer to be compensated for performance. With success metrics determining the amount they see on their paycheck, some professionals thrive. Let's examine the advantages of each kind. Depending on the volume of sales, it may be paid as a flat dollar amount or as a percentage of each sale. While they temporarily boost your company's momentum, there is no assurance that spiffs will produce the desired outcome.Ī commission, on the other hand, is a sum of money given to an employee after they complete a task, typically by selling a certain quantity of goods or services. The majority of spiffs are monetary, such as rewards like prizes, trips, or recognition. Spiffs and commissions are two options for performance compensation.Ī sales incentive for quick results is called an SPIFF (Sales Performance Incentive Fund). Maximizes savings and profits for your company Increases employee retention and engagement Performance pay can be used in situations where you need to come up with original ways to keep your team motivated because all of your employees' efforts and contributions help your business advance.Įmployees may receive performance pay in the form of a salary, wage, or bonus based on metrics they have met.Ĭonsider these reasons as to why you might offer performance pay incentives: Performance pay might be a good solution if you find that your sales team isn't as motivated as you'd like them to be or is less enthusiastic about hitting sales targets.
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