Itâs not just about the paycheck –Â how to motivate your sales team
As a small business owner, payroll is probably your biggest cost. Hiring sales people is expensive, but when theyâre managed well, theyâll help your business to thrive.
Money isnât the only thing that matters to your commission sales reps, and motivating your staff is about more than just the figures on their paycheck.
Fortunately, there are several practical steps you can take right now to enhance the success of your employees and your business. Theyâll help your people feel more engaged, emphasize what matters to your business, and give your employees the tools they need to increase your turnover and profits.
Above all, remember that most salespeople want to do a good job, be recognized for their abilities, and feel they theyâre contributing to yours, and their success. It all starts by understanding and describing what you want your business to achieve.
Sharing your vision and making it matter to your people
Think about your vision for your business. Where do you want it to be in a year, five years, or ten years? What are the values that matter most to you, your colleagues and your customers? Is your business built around quality, speed, efficiency, affordability, or something else?
Define your vision clearly and share it with your commission sales reps. When they know where youâre trying to move to, it makes it easier for them to push in the same direction. For example, if the goal of your business is to become the leader in selling high-quality apartments in your city, create all of your business processes, training, and staff relations with that as the foundation. You donât need to mention it in every meeting, but focusing on quality ahead of speed or price will help to emphasize your priorities.
Once your staff understand this, theyâll start to subtly change their behaviors, helping to drive your business forward.
Creating sensible objectives that support your staff
Itâs vital that your employees know what you expect of them. One of the best ways to do this is to create clear objectives An objective is simply a way of measuring an employeeâs progress towards their immediate job goals. Â These should be based on:
- Their job description – What you hired them to do in the first place (e.g. tasks expected of a commission sales rep).
- Your business outcomes – What your business needs them to do. (e.g. sell x widgets over a certain period of time)
- Their personal abilities – You can tailor objectives to the abilities of your people. (e.g. some salespeople might be better at pitching to businesses, others to individuals)
- Challenging them – Itâs always good to have âstretchâ objectives that will challenge your employees. (e.g. asking them to mentor another salesperson)
Ideally, objectives should be written in clear, precise language that accurately defines what your people need to do, any targets they need to meet, and how they will know if they have been successful. A great way to do this is to use the SMART method of creating objectives:
- S – Specific – Each objective should cover one specific area. (e.g. add-on sales)
- M – Measurable – You and your staff member are able to measure progress against the objective. (e.g. amount of revenue generated)
- A – Actionable – The staff member should be able to influence the outcome of the objective. (e.g. selling x number of apartments or converting x number of leads)
- R – Relevant – The objective should be relevant to the job area and staff member that youâre writing it for. (e.g. salespeople and managers will have different objectives)
- T – Timely – The objective should be achievable in a reasonable length of time. (e.g. per quarter or annually)
Having regular one-on-one meetings with your employees
Once youâve got your vision and objectives in place, itâs important to have regular one-on-one meetings with your staff. You can make these meetings quick chats where they highlight any successes, questions or concerns, or more in-depth discussions, where you track progress against their objectives. A good routine is a Â 30 minute chat every month, and a more formal meeting every quarter.
These meetings are a great time to give feedback, raise any concerns, and check that your employees are making progress.
Sharing positive and constructive feedback
If you want to build strong trusting relationships with your commission sales reps, it’s very important to establish good ways of providing feedback. Constructive, specific feedback that your staff can act upon is a great way of coaching them and guiding them in the right direction. Avoid giving general feedback like âYou need to sell more widgets.â Instead, give specific coaching and guidance on the particular methods and techniques they can use to sell those widgets.
Sharing feedback, appreciation, and respect is vital to having happy employees. People react better when they receive positive and constructive feedback that directly addresses any concerns you or they may have. When you combine this with respect and appreciation, it creates better working relationships, a more pleasant environment, and brings any concerns into the open.
Building accountability and trust
If youâve hired the right commission sales reps, you can trust them to do a good job. Demonstrate this by giving them the accountability to complete tasks in their own way, to the best of their abilities. Many salespeople work best when they have control over what they need to do, when they need to do it, and can choose how to approach their actions.
If youâve got good targets and objectives in place, you know your people will want to achieve them. They will find a way to move forward that works for them, and you can largely let them decide on the specifics. Trust is a very powerful self-motivator. When people feel they can trust their leaders, they will often go above and beyond whatâs expected of them to deliver excellent work.
Managing people in the proper way
People need to be managed differently, depending on their skills, experience, expertise and self-confidence. Adapting your management style to the needs of each salesperson will give them the support they need to do a good job. There are four main types of management style you can use, depending on how experienced an employee is. They are:
Directive management style
This management style is best for inexperienced employees. It involves you or another senior person working closely with an employee to give them continual direction, support, and training as they learn new skills and roles. Itâs very âhands-onâ and is essential for helping new employees adapt to their role. Combine this management style with regular feedback and support to get your staff trained quickly.
Supporting management style
A step above directing, this is the best method to use when staff already have some idea of what they need to achieve. Theyâve got a basic understanding and can do most of what you expect, but there are still gaps in their knowledge. They should have continual access to other team members or a superior so they can ask questions and learn more about their role when they need to.
Coaching management style
This is probably the most common management style, and is suitable for most staff members who understand almost everything about their job role but may occasionally run into issues with your systems or processes. It means you rely on them to ask questions and provide high-level coaching and guidance when necessary. Youâre available, but you largely expect your staff to manage their own time.
Delegating management style
This is the technique you use with your most competent and experienced staff. It means just asking your employee to do something and then leaving it to them to decide how to approach it. People you can delegate to will normally be very self-confident and will find ways to solve problems they face, often without involving you.
Tying their success to yours
AlthoughÂ motivating your sales peopleÂ is about more than a paycheck, money is still a powerful driver. Because your employees are working to make your business succeed, tying some of their rewards into your business performance is a good idea. You can do this through extra commission, profit sharing, providing a bonus (either regularly or one-off), giving them stock options or rewarding them based on how they do against their objectives.
Understanding your employeeâs concerns
Everyone has concerns and problems at work and at home. Taking some time to empathize with your staff and supporting them with any issues shows that youâre a good boss. If you notice the performance of a good staff member is slipping, raise it with them gently. Find out if thereâs any coaching or support you can give them to make things easier.
This is especially important when it comes to work / life balance. When people arenât able to get clear boundaries in place between their work and their personal time, it can make them very stressed. If you notice people working long hours, or their personal life is impacting their work performance, talk to them and see how you can solve the problem together.
One of the best ways to build trust and create a good working environment is to let employees share their ideas and concerns with you. This means having an âopen doorâ policy, a way that staff members can tell you whatâs going on without fear of repercussions. Once your staff members realize they can trust your leadership and that youâll support them, youâll see big improvements in morale.
Business is about more than just meeting targets, managing objectives, and selling widgets. Part of helping people feel valued is celebrating successes, on both a job level and a business level. The next time someone closes a big deal, take the time to congratulate them and show your appreciation. If the business exceeds all of its targets, take your employees out to dinner.
Many small businesses have pizza and beer Fridays after work, or provide other facilities to their employees. This all helps to create a better work environment, helps people avoid burnout, and helps everyone understand how theyâre making your business thrive.
When people feel valued, they will work harder. Feeling appreciated doesnât just come from one area, itâs a combination of many things. Remember:
- People want to do a good job
- Sharing your vision gets everyone aimed at the same goal
- Setting clear, SMART objectives tells people what they need to specifically achieve
- Having regular one-on-one meetings means you can give feedback, build trust, and find out about any concerns
- Adapting to the right management style will give your people the right level of support
- Tying the success of your business to your salespeopleâs success will help them feel invested
- Celebrating successes creates a better working environment
When you can bring these areas together, youâll enhance peopleâs pride in their work, build better relationships, and ultimately create a more successful, sustained business.