We changed our sales incentive compensation system this year. And with the first quarter completed, we had our fist quarterly assessment of quotas and how each sales representative performed. What an eye-opener!
We had our best quarter ever, so we expected that most reps would have performed well. And many did, but there was a sizable group of reps that under-achieved by a wide margin. Some were 60% to plan or 70% to plan.
The entire sales management team had to come together to work through the action plans needed for the under-performers. Not an easy task coming off a month and a quarter where many reps were making huge commissions. It took the whole team to coach these reps through and get them on the right path.
So here are a couple of takeaways for you if you are a sales manager:
First, teach your reps early on about their new compensation plan. Go through it with them until they get it. I always put our incentive comp plan in writing and make the reps sign it and keep a copy. No rep should be surprised at the end of the quarter that A) they didn’t make it, and B) they would be penalized if they missed their quota.
Secondly, utilize your fellow sales managers, directors and VP of Sales to help you coach up your struggling under-performers. If you allow them to wallow in their misery they will bring down your other reps. So get them reenergized and positive as soon as possible.
Have a great second quarter!
Bill