Can Sales Executives work better and reach their targets if they’re paid only salaries and not incentives or commissions?
Years of research by many international professional organizations and universities show that incentives are usually offered in two areas: physical and mental performances. In physical jobs, like farming or construction, offering the employees extra cash on the spot if they finish more than their daily load, will work wonders and because all they have to do is to push their bodies and muscles the extra mile to perform faster. In mental jobs, like Sales, for example, it’s a different story. When Sales Executives are given incentives they get excited and push their ‘brains’ to focus more and to close more deals, but they can’t make their brains work faster, better or smarter. So, incentives to the sales team end up bringing more pressure and anxiety rather than motivation and joy.
If you decide to keep your sales team on a fixed income package, you need to make certain adjustments. The company needs to offer a more comprehensive package to cover many of the employee’s lifestyle needs. The advantage to your prospective customers is nonbiased support from the Sales Executives knowing that they’re not a commission. If you’re worried about being taken for a ride by some poor performers, just implement a stricter system that aims to help good performers do better and poor performers find another job in or out of the company…and that’s just my two cents.