How do the commissions displayed in real-time improve your sales team’s motivation and performance?
6 minutes read
A decade ago, it was considered normal for sales reps to wait for weeks (or sometimes even months) to get rewarded for
- The long hours that they have put in at work
- The hard work that they have done to close various sales deals
- And the extraordinary results that they have generated
At that time, the sales reps also had
- The patience to wait for their rewards
- And the trust that their reward would be delivered accurately when the time comes
So, its time for sales departments to adopt and implement Real-time commissions/ rewards
What are real-time commissions and rewards?
Real-time commissions refer to the implementation of a system that automatically calculates the commissions of all reps whenever they make progress and updates them on what they have earned in real-time. Here the commission updates go from weeks to minutes or seconds.
By having their commissions right in front of their eyes, sales reps can be carefree about their earnings and focus on their sales activities.
How does displaying commissions in real-time benefit your sales team and management?
Here are some sure shot benefits that you receive by displaying real-time commissions:
1. Improves work satisfaction and motivates better performance from your reps
Wouldn’t this significantly improve her work satisfaction, engagement, and motivation to strive harder and perform even better? That’s the power of real-time commissions. It facilitates a way for your reps to almost immediately see what they have earned for every small and big progress that they make.
2. Lowers Employee Churn Rate
Employees usually leave organizations,
- Either if they think that they aren’t able to contribute and grow at their organization
- Or if they think that their contributions aren’t valued at their organization
3. Makes it easy for reps to meet their personal financial goals
Live real-time updates about their earnings will motivate them to work harder to meet your business goals and their personal financial goals simultaneously.
4. Reps don’t have to spend time calculating their commissions
- Saves a lot of time for them
- Decreases employees’ stress and uncertainty at the end of the commission period
- And enables them to focus their precious time on selling instead of calculating commissions
5. Makes it easy to settle commission disputes
When the employees’ commissions are not updated in real-time and are not made transparent to the employees, there is a huge chance that commission disputes are going to arise. So in case of commission disputes, how are sales ops and sales reps going to settle them?
- Firstly there is going to be a lot of back and forth emails between the sales ops and sales reps about the dispute
- Then there will be rechecking and recalculation of commissions (which is a lengthy process in itself)
- Then there is going to be an exchange of emails again clarifying things
- And then finally it gets settled
All of this takes a lot of time. Both for the sales employees and the sales ops.
Learn about the psychological aspects that you need to consider while developing a sales compensation plan
Check out some interesting statistics about sales compensation
Learn why is it necessary to automate your sales incentive compensation
Learn how to select a sales compensation automation software
Learn why Excel spreadsheets are not a good option anymore for managing commission data
Learn how to make your sales compensation plan motivating for your managers
Learn how design, implement and gamify your sales incentive plan
Published on Wed Apr 20 2022