Sales Team Issue Number Five:
Morale, Reward, Empowerment, Attitude
As we start to analyze our efforts, the natural tendency is to think
about the quality of our product, the pricing strategy and the promotion of our
products and services.
However, one of the top concerns for sales teams is the productivity of
the individuals. The productivity is not necessarily dependent on the product
and the company policies as much as the morale of the individuals that compose
the team. We all know that human psychology can be incredibly complex. People
can do the most bazar things when they are under duress. Beyond saying that
sales management should care deeply about their associates, the interaction and
support of dysfunctional people is beyond the scope of this article.
As a company and a sales team, it is imperative that you have a Vision
Statement, A Mission Statement, established goals and an accountability program
in place. In conjunction with these items there should be a fair and
competitive base, bonus, and benefits program in place. Do not make the error
of assuming that a generous compensation program is the answer to any morale
concerns in the company.
Let’s break these individual components down so we can understand the
benefits of stressing their importance.
A Vision is a statement of where the company plans to be in the future
and the principles that the company communicates to all the associates and
related business partners. Some people
may label it as an overarching goal that permeates the system. It is the hope
that inspires everyone that there is a desire to continuously improve. Be
aware, one of the primary reasons people leave their jobs is because they did
not see a future for themselves at that company.
A significant subset of the Vision statement will be to individually
have a purpose statement for your personal and business life. In reality, they
are intertwined and should not be confused as separate entities. Your purpose
for living can be played out in your values and actions that drive your
behavior every day. This is one of the areas where you genuinely have control.
Use it to your advantage to display that the company vision and your mission
deliver excellent value for your customers.
In contrast the Mission statement provides day to day direction to the
activities of the individual salesperson and management team. A Mission statement
allows the sales contributors to analyze their activities to ensure them that
what they are doing is actually going to build sales and contribute to the
bottom line. The Mission statement should be a customer centric directive that
assures the prospective client that their needs are a priority for the company.
These two statements should not be something developed in the boardroom,
communicated once, and left to gather dust as a neglected sign in the corner of
the conference room.
Rather they must be something lived out by the ownership, management,
and sales team as they conduct business on a day-to-day basis. These values
should be stressed as a crucial part of the company’s operating strategy.
You may be amazed at the lengths your employees will go to see these
values delivered to their customers if there is true buy in.
Individual goals are typically established for the sales team in the
form of quotas. Quotas serve as a benchmark to access the performance and
profitability of the individual sales contributor, team, division, and the
company itself.
In my experience, equitable quota assignment can be a difficult thing to
determine. Individuals need a fair level of compensation to pay for their necessities.
And companies must make a profit to stay in business, attract investors and
fund future operations. It is easy to shortchange either party when assigning
these sales goals.
If the quota is too low, then the company may be obligated to paying more
than they can afford. If the quota is too high, then the sales associate may be
underpaid in relationship to their contribution.
It is not uncommon to see income numbers in the USA that will support an
average family of four to an “acceptable level.” We are also told that after
some level of consumption, additional consumption does not increase our satisfaction
levels. However, if the company cannot see their way to compensate their sales
team at a competitive level, expect low morale and turnover to be a constant
concern.
Accountability is one of the primary roles of the sales manager. It is
simply an aspect of human nature to attempt to perform to an assigned level (or
higher) if there is oversight and reporting as part of the job
responsibilities. The sales industry has moved into an era of metrics to
measure, analyze, adjust, and drive our efforts towards a close.
As sales managers, be sure to make your metrics a true measure of moving
the sale upward towards a close, rather than some unnecessary and arbitrary activity
function that dilutes the sales effort.
As a sales manager, you must continuously ask yourself; Am I
micromanaging my team or helping them grow?
One of the best contributors to an individual’s morale and productivity
factors is the level of empowerment you allow them.
When the sales manager begins with a new and inexperienced sales
producer, then by necessity there must be a higher level of oversight and
limited empowerment. As people grow in their experience, exhibit responsibility,
and produce sales on their own, then more independence and empowerment can be
allowed. Quite frankly, a high level of empowerment should be one of the sales
manager’s goals.
If the level of empowerment is increased, in conjunction with a title
change to publicly acknowledge the new trust level provided, it can lead to a
morale booster for the individual and the surrounding team members.
These aspects of leadership and management are critical parts of morale
and production. However, without hiring the best person for the job, all your
efforts can be wasted.
It cannot be stressed enough that taking extreme care in your hiring
process is one of the most critical decisions you will make. The costs of
bringing on a new person, only to have them “wash out” within the first year
are painful. I have read numerous times over the years that early turnover will
cost 18 months of productivity and up to two times the annual salary of the
sales position.
In addition to a very thorough interview, (e-mail GDS@truconbd.com for an interview template) it
is strongly suggested that you use at least one sales personality profile test
before making a hiring decision.
tant concern.
Accountability is When I was with Vallen Safety (18 years), we used the Birkman Personality test as our primary screening test. It became a trusted resource over the years. Every time I hired someone who did not fit the industrial sales profile supported by Birkman, it was eventually a mistake.
You may also have your applicants take a DISC test before making a decision. A valid test and response can be found on the Tony Robbins website for a nominal fee. Of course, there are other tests available. I also like Tom Rath’s Strengthfinder 2.0. test.
The bottom line is that some people are simply not going to be a wise long-term decision as an addition to you team. It will be best for them and for you to pass on hiring them.
Never forget that your company rises and falls based on leadership. From the front-line sales manager to the President/CEO, eventually the strength of leadership or the failure to provide quality leadership will work it’s way throughout the entire organization.
Please look at the graphic below and begin to analyze how your interaction with your sales team stacks up. No pun intended!
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