CompaniesCompensation plans should be designed to motivate and reward seven key behaviors.
To find out how your compensation plan is doing, answer “yes” or “no” to each of the following questions:
1. Personal Consumption
Do your independent representatives personally use or consume your products?
2. Sales to Retail Customers
Is the percentage increasing of total company sales to non-participants in the income opportunity?
3. Retention
Is your rate of retention of representatives above average for companies like yours, or if not, is it on the rise?
4. Recruiting/Sponsoring
Are you seeing increases in the percentages of representatives who have recruited at least one person and the percentages of representatives who have recruited at least two people?
5. Supporting Others
Is your compensation plan driving a team-building culture?
6. Becoming a Leader
Do you have an effective Leadership Training Program for all ranks of field leadership?
7. Developing Leaders
Are there sufficient financial rewards and recognition for developing leaders?
If you answered “no” to any questions, you have some work to do.
The first step is to measure the performance of your compensation plan over periods of time in each of the key areas so that you can see clearly what is working for you and the areas in need of positive change.
Are the performance results of your sales force in line with industry averages? Better yet, is your company “beating” industry averages?
Once you’ve identified your targets of opportunity, you can proceed to the next step… adjusting your compensation plan to achieve optimum results.
Be sure to include a transition plan to introduce the plan changes to your field and to minimize the effects on individual representative compensation.
When you encourage and reward properly each of the key behaviors, the success of your representatives will propel your company forward.
Sylvina Consulting can help you to evaluate the performance of your compensation plan and, if needed, to design changes to encourage higher rates of activity, retail sales, retention, rates of recruiting and leadership.
For a confidential, no obligation discussion of your compensation plan needs, contact Jay Leisner at 503.244.8787 or email jay@sylvina.com.
Tags: behavior, compensation plan, Compensation Plans, motivate, reward
