What Employees Want
Much research has been done on determining what makes individuals reach
higher levels of productivity. The most renowned studies were done by Abraham
Maslow and resulted in Maslow’s “Hierarchy of Needs”. This hierarchy explains
that individuals first need to satisfy physiological needs (food, water, etc.)
before moving to higher levels of the hierarchy. The next levels; Safety,
Belonging, Esteem and finally, Self Actualization were achieved in order and
only if the lower levels of the hierarchy were satisfied to some extent.
Frederick Herzberg used a similar approach to explain how individuals could
be motivated at work. His work can be related to Maslow’s research by matching
motivating factors in the work place with Maslow’s hierarchy. Basic compensation
can be related to the most basic physiological needs. Benefits and job stability
can be related to safety needs. Company and employee sense of belonging can be
related to belonging needs. Recognition can fulfill esteem needs and employee
self-direction can fulfill self-actualization needs.
Research has shown that employers successfully employ Herzberg’s “Hygiene and
Motivation Factors” in the work place can have higher levels of productivity,
lower levels of turnover and employees with higher levels of self esteem at work
and home.
Sales Force Requirements
The most critical factor in having a successful sales force is choosing
individuals who will be successful in a sales environment. These individuals
should feel comfortable in approaching and talking to strangers. They should be
able to engage in conversations and be good at listening. Individuals that will
be successful in sales are also good at problem solving. A good sales person is
able meet a potential client, get that potential client to talk about their
needs and find solutions for those needs.
If people filling sales positions do not have those characteristics, sales
success will be limited to product strengths and market demand. This is an
important distinction. Sales managers can at times have such great success with
product benefits and market demand that they fill sales slots with people that
interface well with customers and can fill orders accurately. These are known as
order takers and fill an important role in organizations but they are not sales
people.
Sales people are much like entrepreneurs. They like to solve problems. They
like to understand the full scope of their business and how it fits into the
marketplace. They like to compete and they like to win.
Directing a Sales Force
Successful direction of a sales force requires clearly establishing the
parameters of success and insuring the sales staff is properly trained. The most
difficult part of a sales manager’s job is identifying the tasks that will lead
to success and measuring the level at which each sales person is performing
those tasks. Identifying sales responsibilities is critical. Those
responsibilities include:
1) Product knowledge – can be determined through questionnaires
administered after an indoctrination course.
2) Industry knowledge – can be determined through questionnaires
administered after an indoctrination course
3) Sales volume – For any business to be successful a minimum sales volume
must be attained and can be broken down to minimum sales volume per sales person
per sales period.
4) Sales Calls – To reach needed sales volumes, sales calls have to be
made. Most organizations have statistics on number of calls made per successful
sale that can be used as a target for the sales staff.
5) Account development – To grow, new customers added must exceed current
customers that become inactive.
6) Customer satisfaction – This can be measured through customer surveys
and customer complaints.
This list can be longer and more complex but it must be clear and objectively
measured. The sales manager and sales person must be able to look at the metrics
and arrive at the same conclusions regarding goal attainment.
Motivating a Sales Force
Successfully motivating a sales force requires the recognition that sales
people will perform best when they can achieve the needs outlined by Maslow and
Herzberg through the sales process.
Basic compensation is important and assures that individuals will be able to
meet their basic financial (and physiological) needs. This can be accomplished
by providing a base salary or a list of regular customers on which a commission
is paid. Commission programs can provide basic income and incent sales people
to find new customers as well. Components of the incentive program can focus
sales people to increase the number of active customers per period or the
revenue per customer per period. The basic salary and/or commission should
provide a living wage with the ability to provide an income equal to successful
sales people in other industries in the same market.
Safety needs can be met through providing a reasonable amount of time for a
sales person to achieve assigned sales goals. Sales people like a challenge but,
as with all jobs, a new sales person will require an amount of time to become
productive. Most companies have statistics on the length of time required to
acquire sufficient product, company and customer knowledge to be successful.
Safety needs can also be met through certain benefit programs such as health
insurance and 401 (k) programs.
Belonging needs can be met through sales meetings and company wide meetings
that create a camaraderie that is supported throughout the company. Good sales
managers will recognize the importance of a sense of belonging and will work
hard to insure favoritism and unfair management practices do not impair team
building.
Esteem and recognition can be accomplished through setting meaningful goals
that are achievable. This can be a part of the commission program that focuses
on new accounts, active customers per period, revenue per period per customer,
multiple products per customer per period and so on. Additional recognition
programs for certain achievements can be held monthly, quarterly or annually to
further build esteem and recognition.
Using promotions as a form of recognition should be used carefully. A good
sales person does not necessarily make a good sales manager. It may be desirable
to create several levels of sales positions if promotion is to be used as a form
of recognition.
Self-actualization can be accomplished by allowing sales people to help
establish sales goals and “stretch goals”, develop new sales approaches and
participate in new product design and pricing.
As a manager, it is important to approach staff motivation in a process that
keeps a focus on the company and the sales staff. Programs should be designed
within the company’s financial wherewithal and in a staged process. In other
words, identifying responsibilities and standards should be implemented before
motivational programs. Salaries and benefits should be within the company’s
financial capabilities and should be the first motivational/hygiene factor
addressed.
If a company already has a stable sales force but needs to improve
productivity focus might be directed more to upgrading the standards of
performance and recognition factors.
Additional motivational/hygiene factors can be implemented at any time but
should not disrupt progress being made by the basic programs. These additional
programs should be added when there is a tangible benefit that accrues to the
organization and there is no disruption due to the implementation.
Summary
Creating a successful sales force is critical to the success of most
companies. Screening and choosing qualified individuals and subsequent training
is paramount.
Beyond screening and training, creating a successful sales team requires
management to spend the time to clearly understand what is needed for the
company to be successful and translate that to individual performance
requirements. Additionally, management must pay attention to the motivation and
hygiene factors that will make sales people want to come to work in the morning
and leave at the end of the day feeling good about their accomplishments and
their company.
Each company will have a different set of challenges and the approach to
improving sales productivity will be different.
If a company chooses the right people, trains them and manages through a
focus on performance standards and hygiene factors the chances for success are
improved dramatically. Additionally, the chances are increased that productivity
will continue to be high over the long term and that employee morale will be
high and turn over will be low.
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