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If you ask a salesperson what motivates them, you might be in for a surprise. Because it's not what you expect conventionally conditioned coin-operated sales reps to say. Meaningful work, satisfaction and knowing that they are valued is the answer!
Seperti karyawan lainnya, staf penjualan juga datang ke tempat kerja untuk melakukan hal yang paling mereka kuasai, yaitu menjual.
But if enough effort isn't put into motivating sales reps, they leave. And the cost of a sales person leaving is high.
Research shows that it takes 3 years on average for a sales rep to reach peak performance. 3 years is a considerable amount of time, so good reps should be seen as an investment. Unfortunately, this investment is entirely lost when a good rep leaves over sales commission issues – the #1 reason why sales reps leave.
But why is losing reps so costly?
Simply because the cost of sales rep is not just the tangible cost of salary + incentives paid to him but includes a lot of intangible and hidden costs.
Jadi, biaya kehilangan perwakilan adalah kombinasi dari biaya perekrutan untuk merekrut perwakilan penjualan baru + biaya pelatihan perwakilan lama + biaya pelatihan perwakilan yang baru dipekerjakan + biaya kinerja yang lebih rendah dalam periode pelatihan baik perwakilan lama maupun baru + biaya peluang bisnis yang hilang.
Jadi, mengapa perwakilan penjualan pergi?
Alasan nomor satu berkaitan dengan insentif.
Hal ini sama sekali tidak mengherankan, mengingat insentif adalah komponen utama dari struktur gaji untuk perwakilan penjualan, sehingga sangat penting bagi organisasi untuk melakukannya dengan benar.
A strong commission structure is essential for retaining top sales talent. However, when sales reps feel shortchanged, they’re more likely to seek better opportunities elsewhere. Here are the key commission-related mistakes that drive sales reps away—and how to avoid them.
1. Delayed commission payments
Sales reps rely on timely payments to cover their expenses. Delays in commission payouts can create financial strain, frustration, and ultimately push them to look for more reliable employers.
2. Inaccurate commission calculations
Nothing is more frustrating for a salesperson than receiving an incorrect paycheck. If reps consistently find errors in their commissions, they may lose trust in your organization and leave for a company with a more transparent system.
3. Poorly communicated incentive plans
If sales reps don’t fully understand their incentive plans, they may feel misled or that their efforts aren’t properly rewarded. Clear communication ensures reps know what to expect and stay motivated to achieve their targets.
4. Unfair treatment or favoritism
A level playing field is crucial for maintaining morale. If some reps receive preferential treatment—whether through better leads, exclusive deals, or different commission structures—others may feel undervalued and start searching for new opportunities.
5. Unrealistic quotas
Setting quotas too high can discourage even the best sales reps. Ideally, about 75% of your team should be able to meet or exceed their quotas. If your targets are consistently unattainable, top performers may leave for a company with a more realistic approach.
6. Complicated or restrictive commission structures
Salespeople want to maximize their earnings, and overly complex commission plans can make them feel like their compensation is being capped or manipulated. A simple, transparent commission structure helps prevent misunderstandings and keeps reps motivated.
The true cost of losing a sales rep over commission disputes
Tapi berapa biayanya? Menurut sebuah penelitian, biaya rata-rata untuk mengganti seorang perwakilan adalah $115.000. Dan dibutuhkan rata-rata 6,2 bulan untuk mengganti seorang perwakilan. Dengan tingkat perputaran rata-rata 28%, ini memang biaya yang sangat besar.
Beyond losing a valuable team member, the financial impact of sales rep turnover can exceed $100K. To fully understand the cost of losing a rep due to sales commission issues, consider the following factors:
Sales churn disrupts organizations, forcing teams to dedicate significant time to screening, interviewing, and training new hires. To stop losing salespeople, businesses must focus on retention strategies, including offering the best incentives for sales reps to keep top talent engaged and motivated.
If you’re making mistakes with commission payouts, it’s going to cost you. Here’s what you stand to lose if your commission structure fails.
1. Culture erosion
Commission errors are a bell you can’t unwring. A single mistake can erode trust, casting doubt on your organization's ability to get things right. Once trust is lost, it’s difficult—if not impossible—to rebuild. And once doubt sets in, it spreads fast.
Sales reps will start scrutinizing every commission statement, wondering if they’re being short-changed. That lack of trust is toxic.
The same applies when reps feel their commission rates are too low or their sales goals are unrealistic. If your incentive plan is perceived as unfair, it quickly turns into a disincentive. Providing the best incentives for sales reps isn’t just about motivation—it’s about retention and performance.
2. Decline in productivity
A demotivated sales team translates to lower productivity—fewer calls, fewer emails, and fewer follow-ups. It can even impact close rates. When faced with tough objections, a disheartened rep might wonder, “What’s the point?” instead of pushing forward.
This isn’t just a temporary dip in performance; it compounds over time, dragging overall sales results down. When sales incentives are mismanaged, you risk losing salespeople who would otherwise be top performers.
3. Increased attrition and hiring challenges
A flawed commission plan doesn’t just impact current employees—it makes it harder to attract new talent. High performers won’t stick around if they feel their compensation is unpredictable or unfair. Instead, they’ll seek opportunities at organizations that offer well-structured commission plans with transparent payouts.
Even worse, dissatisfied employees often share their experiences on platforms like Glassdoor and Payscale. A negative reputation around compensation can make hiring even more difficult, leaving you with empty seats and an underperforming sales team.
4. Human error and legal risks
Beyond lost productivity and talent, commission mistakes can have serious legal consequences. Did you know that errors in commission payouts can expose your company to class-action lawsuits?
For example, in 2017, Oracle faced a $150 million class-action lawsuit for underpaying commissions. In 2019, IBM lost a similar lawsuit for withholding commission payouts.
These cases highlight the high stakes of mismanaging sales compensation. A simple miscalculation or lack of transparency can quickly escalate into a costly legal battle.
When you factor in lost trust, reduced productivity, higher attrition, hiring difficulties, and legal liability, the real cost of commission mistakes is staggering.
You might get away with a mistake here and there, and some reps might tolerate a flawed commission structure. But is it really worth the risk?
Consider leveraging technology to automate incentive pay calculations, ensuring accuracy and transparency. A well-designed compensation management system doesn’t just prevent errors—it helps you stop losing salespeople and build a high-performing, motivated sales team.
Dan di situlah Compass hadir!
Compass is an unorthodox product built for orthodox problems in the most traditional function, sales.
Compass is the ultimate personification of the bilateral vision of democratizing sales incentives and making sales fun and is judicious for all industries across geographies.
Compass membantu Anda membuat program insentif yang kompleks dengan mudah menggunakan Excel dalam beberapa klik, memilih templat permainan, dan mempublikasikan programnya, semuanya dalam waktu kurang dari 10 menit.
Dengan Compass, tenaga penjualan, manajer, admin, tim SDM, tim keuangan dan manajemen memiliki akses real-time ke laporan insentif. Dengan memiliki data yang tersedia, staf penjualan termotivasi untuk melihat apa yang telah mereka dapatkan dan bagaimana mereka bisa mendapatkan lebih banyak lagi. Selain memotivasi tim penjualan Anda, Compass memberikan transparansi penuh ke dalam perhitungan aktual di balik angka-angka tersebut dan tim Anda dapat mempercayai angka-angka yang mereka lihat karena mereka memiliki visibilitas ke dalam cara perhitungannya.
Compass juga memungkinkan Anda mengotomatiskan proses dan semua perubahan dapat ditangani hanya dengan beberapa klik. Ini juga menghemat banyak waktu dan menghilangkan ketidakakuratan serta memungkinkan tim Anda untuk menghabiskan waktu di area penting lainnya dalam bisnis.
Dengan Compass, Anda dapat menangani implikasi dan kepatuhan pajak geografis sebelum pembayaran insentif. Anda dapat mempertimbangkan salah satu atau semua jenis pembayaran insentif seperti transfer bank, katalog hadiah lebih dari 20.000 kartu hadiah digital, kartu prabayar, pengalaman, dan dompet di lebih dari 80 negara, nota kredit, atau transfer bank lama. Pembayaran dapat dikelola di berbagai wilayah & mata uang dengan lancar.
The secret to retaining a salesperson lies in discovering their “hot buttons” and making sales incentives crystal clear is the way. Schedule a call now to know more about how Compass can help you!
