I can attest to the findings referenced in this Manpower survey: Just last week, ManpowerGroup released the results of its sixth-annual Talent Shortage Survey. The survey included almost 40,000 employers across 39 countries and territories. Globally, 34 percent of employers say they are having difficulty filling positions. The three most challenging occupations are Technicians, Sales Representatives, and Skilled Trades. The reasons most often cited are lack of experience, lack of available applicants and lack of technical skills. In the US, there is the added reason that candidates looking (sic.) for more pay than is offered. Don’t you find that last line interesting? Candidates are negotiating the compensation plans. In sales,… Read More
Continue ReadingCompensation Consternation
I know, lame title, but I couldn’t resist. ManageSmarter.com offers up this article – Compensation Complexity Hinders Sales – regarding current compensation plans. Here are some numbers they quote within the article (my editing): Only 41% of sales leaders were satisfied with their current compensation plans (down from 59% two years prior), and only 46% believed their plans were promoting the correct behaviors for sales success. Nearly half (46%) of sales force leaders believe their sales compensation programs have become more complex since 2006. I always found the compensation plans to be more “complex” when I wasn’t at quota. Successful selling definitely alleviates many problems. But there is this: The… Read More
Continue ReadingThe Social Salesforce
Salespeople are motivated by many factors, but the primary, most common motivation is Utilitarianism. The drive is for a return on investment. Most people first think of money which is a good example, but it is bigger than that. It involves a return on time, effort, energy, resources, etc. 72% of the top salespeople in any market or company are motivated by Utilitarianism. Now imagine a salesforce that is not compensated in some manner by commission – a group with a strong Social motivation. You would then have this story from the Boston Globe – A noncommissioned sales force? You’re crazy: What is it that Little, vice president of sales… Read More
Continue ReadingCompensation – Keep It Simple
Every year we find December to be a fertile time for sourcing salespeople. One of the biggest reasons – the upcoming year’s compensation plan. More specifically, new commission plans tied to new quotas. The salespeople receive the new plan and are, well, disgruntled. Or ticked off. Good salespeople tend to look outside for new opportunities when their commission plan gets over-adjusted following a strong year. Let me speak clearly here – I am all for raising the bar, but you do have to take all factors into account before setting the new targets. ManageSmarter.com offers up this article – Fast Track Your 2008 Sales Compensation Plans – with 10 tips… Read More
Continue ReadingEntrepreneurial Lessons
CareerBuilder.com links to an Entrepreneur.com article that asked… 9 entrepreneurs take a look back at their startup days and reveal what they would have done differently if they knew then what they know now. Great premise. Here’s the response I enjoyed the most (emphasis mine): “We would have spent more time and money on search engine optimization. Top placement in Google is key to any business in this day and age, and the cost of PPC gets higher every day. In addition, we would have placed more emphasis on employee commissions. We’ve learned over time that commissions and incentives drive employees to bring in more business.” How true that is. … Read More
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