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September 13, 2012 ISSN# 1545-2646
Reward for Results
Now is a great time to start working on your 2013 incentive programs. You have a picture of how 2012 is going to wrap up. Looking forward into 2013 you are beginning to prioritize where the organizations resources must focus.
The last few years, your employees have witnessed many cuts in resources from benefits to compensation to the number of total employees at the organization. Some businesses have begun to do some new hiring. Others have restored various programs to support their loyal staff.
As you define and determine the goals and directions for your business in 2013 you need to reward for results. Not just any results but results that are directly in alignment with the goals to move the organization forward.
Look at your product and service mix. Which of these provide the greatest profit margin? How can you incentivize your sales reps to focus on these while not dropping the ball on other items in your catalog?
When you look at your rewards program, dont make them so complicated that you lose money trying to figure out how and who to pay. These soft costs end up getting buried but impact the overall profitability of the business.
Dont just keep repeating a weak incentive plan just because it is in place and people are familiar with it. Every plan has opportunity to improve. Ask your reps to give you some of their thoughts on how to simplify. Obviously you still have the final say but they can give you some real valuable input and then they have a greater level of ownership in the plan itself. That by itself could be worth a couple of profit points to the good next year.
You should also look at various reward plans that are not just all about money. If you can customize your plans to meet with various reps interest you can definitely drive revenues. They are more inclined to pursue sales when they are rewarded with items they want.
Consider how your reward plans can drive constructive competition without destroying team morale. Involve the non sales reps in plans as well so the energy of the team can help push sales reps to perform at higher levels.
Need some ideas or a plan review? Give JKL Associates a call or send us an email at (313) 527-7945
Questions or comments – email us at partners@jklassociates.com or call our Office at (313) 527-7945
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