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What we Think About Sales Motivation is All Wrong
Written by: Dave KurlanArticle Overview: The bottom line - for your salespeople - is that everyone is different; everyone is motivated by different things and for those who are clearly motivated by money, and where you have a clear goal and focus for them, their compensation should and must be commission based. When you have people who are motivated more by recognition, awards, competition, time-off, public service, or philanthropy, your compensation program should be flexible enough to compensate them in an appropriate manner too.
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What we Think About Sales Motivation is All Wrong
Arno was kind enough to point my attention to this great video presentation from Dan Pink on the science of motivation.
Dan uses science, examples and case histories to tell us that almost everything we thought about motivation is wrong....or is it?
Now he never mentioned sales, selling, the sales force and salespeople specifically, but we do know he said this:
"When the focus and goal are clear - incentives work great."
That condition is certainly in play for incentive programs, contests, rewards and awards. And it's in play for many compensation plans too. But are the focus and goal always clear? When salespeople take our assessments, one of the questions asks by how much they exceeded or missed their quota or goal. The data shows that a significant percentage of salespeople don't have a goal or a quota! He also said:
"When you don't want the worker focused, and you want them thinking on the periphery, then incentives don't work."
That condition is certainly in play for new companies, start-ups finding their way, finding a market, finding partners, and that have no existing revenue stream. A salary is the appropriate way to compensate the first salespeople on board in this scenario.
If we look at the data from the 450,000 salespeople that have been assessed by Objective Management Group, the percentage of findings showing lack of money motivation, especially among higher income earners, has been increasing each year. It's not that they aren't money motivated anymore, as much as they aren't as money motivated as they were earlier in their career, when their money motivation got them to their current income level.
The bottom line - for your salespeople - is that everyone is different; everyone is motivated by different things and for those who are clearly motivated by money, and where you have a clear goal and focus for them, their compensation should and must be commission based. When you have people who are motivated more by recognition, awards, competition, time-off, public service, or philanthropy, your compensation program should be flexible enough to compensate them in an appropriate manner too.
If you found this article helpful, you might find these articles on the subject of money motivation helpful too:
Motivation and the Sales Force
Money Motivated Salespeople
10 Factors for Getting Salespeople to Over Achieve
Complacency
Compensation - The Unchanging Role
Cultural Differences with a Sales Force Evaluation
The Challenge of Developing Sales Engineers
Motivating Your Unmotivated Salespeople
5 Ways to Motivate Your Salespeople
Article Tags: bottom line, case histories, contests, finding partners, incentive programs, incentives, income earners, management group, motivation, objective management, periphery, quota, revenue stream, rewards and awards, salary, salespeople, science examples, target, ups, video presentation
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About the Author: Dave Kurlan RSS for Dave's articles - Visit Dave's website Dave Kurlan is a best-selling author, top-rated speaker and thought leader on sales development. He is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling (Dan Seidman), Stepping Stones (Deepak Chopra and Brian Tracey) and 101 Great Ways to Improve Your Life, Volume 2 (David Riklan). Click here to visit Dave's website Predict Sales Turnover Salesperson Selection Visual Pipeline |
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