About the stimulation of active sales managers. The paradox of an agent
How to give a plan of sales to the trading agent, who actively looks for new Clients, when not only the number of Clients is important but also their “significance”, which is not easy to formalize?
How to proceed in stimulating agents who are looking for new customers, if the first transaction is not indicative? Large customers may well make small trial orders…
What should be done if we found only a few Clients for the month and on top of that, any Client can suddenly pass a large order (it would not be proper to include that in our plan)? That is, to wrongly set up the target income twice or even 20 times(!) is very easy in such a case.
What is to be done in those situations when it is important that the agent not only aims at getting a big revenue from a newly found Client but also tries to sign a contract for more favorable terms for the company on deferred payment.
We shall collect 4 challenges in one salary...
Advantages and disadvantages of multiplication. Dialogues about salary
It is often said that: “I shall pay on end result!.." And just as often we get puzzled with: “Yes, but there are many of them (the results)…” What should we do?
Consider each one? How to “tie” each to one salary then. Outline the “main rating” from several? Which sign should be put between them?
And later. When there are the result criteria of several individuals, how shall we not allow each one to “dissolve” in this “general evaluation” and how shall we NOT “pick” one instead of the other? How shall we not let the opportunity pass, when the employee goes on “retirement” when a big deal is “struck”?
What shall force the employee to constantly “keep” a good level? And what shall be done when the employee “stopped short”, and he feels that the punishment is too severe?
This is what Alevtina Kavtreva and Ksenia Tkalich will discuss about.
Shortcomings of stimulation through profit/turnover
Shortcoming 1. (from nine)
Not considering the fact that the turnover and the work-load are not interconnected. Consequently,
1.1. A huge one-time (sometimes sudden) “turnover-making” order, does not bring further work-load, but the salary increases and as a result the employee relaxes.
And on the contrary. When the main work with the long-waited Client just begins, and new applications are not forecasted, the employees wants to “lawfully” know: why their salaries “fall” as compared to the last “profitable” month, though they are trying harder and wasting more time.
1.2. The employee unconsciously begins to dislike cheap products and services, tries to run away from working with them and consequently does the same in regards to Clients who buy such products. Thus, in some shops, at the tea/coffee (conditional) grinder stands, you might not at all find salespeople (unlike, for example, at the projection TV stand).
As a result, the bonus is "not transparent". The relation between salary and work efficiency is lost.
Employment. 6 typical errors
Much has already been written about the procedures for employment, but sometimes the more you read, the more you are left with questions. The most frequent of which are: how not to give in to the first (often misleading) impression, which the Candidate makes; how to be insured from inadequate Candidates, how not to get carried away by new-fangled tests with strange questions and not scare with strange questions and not scare the normal specialists etc.
In this article, will be considered the errors which are permitted during an interview and also there will be a range of recommendations to avoid them…
Four stories with consequences
The level of the salary on the market and the size of a specific business are not correlated.
There are specific professions and there are their costs on the labor market. There are tasks which are handed over, and there is the price for solving them. And there is also the question, which everyone asks: "How much is such a specialist paid in our city?"
Of course, a good employee can and should earn more, and a bad employee — less. However, the salary of analogous employees in different companies, cannot actually differ greatly. It can differ about 20–30%, but not as multiples, specially, not ten times more; although the income in a huge supermarket and in the "shop at the corner" can differ about hundred times.
A young company has a business plan when it starts at least for the first three years (at least it is extremely useful to have one). We shall consider the result from these three years as the "standard". Apart from the "standard", we shall give the intermediate results — those you should get by the end of the terms. The factual results in the start period "will not be compared to the standard but with the intermediate results". (Note. Visually you can imagine it as a ladder, where every step corresponds to its result and its month.)
Important moment: the intermediate results are given in the beginning and not when it "happened" (is achieved).
а) The plan rises because term has been reached, when its time to reach the indicators outlined in the business plan;
б) The plan rises because good results have been reached and we always want more.
Clause а), unlike clause б), does not cause protest.
Dialogues about salary
Just imagine that You have a staff of preachers and You pay for their work. What do You suppose will be the formula for their salary? The task is not simple, but in no way whatsoever is any religious organization completely solved.
Of course, You are not sustaining a staff of preachers. You have secretaries, agents, waiters, vendors, etc., but the "salary" problem of Your company does not get simpler. In fact, it gets even more complex.
However, to your amazement, a lot of "salary" situations help to reveal the analogy with the material stimulation of preachers. Alevtina Kavtreva and Ksenia Tkalich are having a discussion about the matter.
Who shall pay for an error. And how. Some useful templates of error reports.
By randomly taking a look at any duty instruction, we will certainly find a section there, which with a certain degree of "un-clarity", requires the following qualities from the employee "honesty", "attentiveness", "organization skills, “works without faults” and even "punctuality".
Some Companies are more technological than others. Some manage to set the work in such a way that it is very difficult to allow any violation, error or fault. Different electronic systems are installed to report them, "alarms" about an upcoming break-down or insufficient reserves from the stores; bar coded documents and reports etc.
But even with the most perfect technology, people are not completely "picked out". Errors and faults still happen, and "conflicts" between workers, technologies and machines exist nonetheless.
How will a rational salary model help us here? We shall talk about that in the article.
About errors of planning "from what was achieved"
The general director sets a plan of sales for us every month based on the principle of "what was achieved". It so happens that the more my subordinates and I work, the higher the plan is set and as a result, our bonuses are reduced.
This is not whining. Objectively, the plan was constantly achieved for these months…