A successful commission tracking plan must be centered at realizing company goals by driving the right motivation in workers. For example, if the business targets to secure great profits and a good workforce, the bonus system should compensate employees for good customer service, safe work practices, and profitability. Bonuses based solely on projects and/or company profitability do not drive important behaviors (such as safety, customer service, and satisfaction, following best practices and inter-company teamwork) that lead to long-term company success. Long-term success is the end result of doing the right things consistently
And according to latest findings, most companies have been running on commission plans that are believed not to be working correctly. In that vein, I’ve decided to give you a summary of the signs of a bad commission tracking plan.
Is your commission tracking plan and management not the best for your employees?
It is obvious that companies do hire new sales people when they need to reach out to more customers. This process is often coupled with a series of interviews and more formal proceeding to help you land the best women and men for the job. However, in few cases, qualified candidates may fail to accept your company's offer. Have you ever asked yourself why that happens?
Well, a brilliant individual will always tell you that you need to review your commission tracking plan and make it better for everyone. One of the ways to make your commission plan better for everyone is using a commission tracking software. Besides, under poor commission tracking plans, most companies are always telling stories of their workers leaving for a better pay.
Your commission plan is not based on professional guidelines.
Experts in the sales commissions field understand that the main principles guiding the successful tracking and management of commission plans are derived from education, training, and teaching. It's easy to fall back on the popular belief that you must treat your sales team differently from everyone else in your company by offering them commission-based incentives.
Your commission tracking methods do not focus on realizing the company’s future goals.
Employers should be aware that if they are to get commissions, the tracking process should be fair enough for everyone to benefit from. In most cases, commissions and commission tracking processes rather than foster collaboration within the organization, foster an unhealthy culture of competitiveness that ultimately is not in the companies or the customer’s long-term interests.
Your commission tracking plan sub-optimizes rather than optimize.
This happens when one part of the business works in a silo, focused only on its own success. In terms of sales, it happens when an organization within the company is affecting the success of a sales department, hence as a sales leader, you find that you’re spending all your time checking the numbers, waste time on inappropriate commission tracking, and managing your files, rather than looking for opportunities to make fine adjustments that will inspire your reps and improve the quality of their leads.
For your business to excel, you must optimize your commission plan and commission tracking processes, and find the root cause.
Sales people often argue with the management over commission tracking and bonuses.
More often than not, many companies have witnessed issues related to confusion or mix ups when it comes to rewarding their employees. Maybe those companies are not implementing a good commission tracking process. In such cases, there is always people pointing fingers at each other, which is a clear indication that your commission plan and commission tracking process are not working as a system and it should be reviewed.
Employees are doing their own shadow accounting, and in some cases earning more or less than they should earn.
This is a clear indication that your commission tracking plan is not working for your company. You should understand that we are in a world where your employees shouldn’t be having trust issues with your commission plan tracking.
And with Blitz now available, you should get rid of these problems from your playbook and enjoy the many benefits of Sales Commission Tracking Software: better commission tracking, smoother pipelines, stronger communication, and sharper forecasting.
Sources
- A Sales Guy - The BIG commission screw up
- SmallBizClub - Bad commission plans drive bad sales behaviors