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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 pekerja lain, wakil jualan juga datang bekerja untuk melakukan yang terbaik, 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.
Oleh itu, kos kehilangan wakil adalah gabungan kos pengambilan wakil jualan baru + kos latihan rep lama + kos latihan wakil baru + kos latihan wakil yang baru diambil + kos prestasi yang lebih rendah dalam tempoh latihan kedua-dua wakil lama dan baru + kos kehilangan peluang perniagaan.
Jadi mengapa wakil jualan pergi?
Sebab nombor satu mempunyai kaitan dengan insentif.
Ini tidak menghairankan sama sekali, memandangkan insentif adalah komponen utama struktur gaji untuk wakil jualan, menjadikannya penting bagi organisasi untuk mendapatkannya dengan betul.
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
Tetapi apa kosnya? Menurut kajian, kos purata menggantikan rep ialah $ 115,000. Dan ia mengambil masa purata 6.2 bulan untuk menggantikan wakil. Dengan kadar perolehan purata 28%, ini sememangnya kos yang 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 masuk!
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 membina program insentif kompleks dengan mudah dengan kebiasaan Excel dalam beberapa klik, pilih templat permainan dan terbitkan program, semuanya di bawah 10 minit.
Dengan Compass , wakil jualan, pengurus, pentadbir, pasukan HR, pasukan kewangan dan pengurusan mempunyai akses masa nyata kepada penyata insentif. Mempunyai data ini sedia ada mendorong wakil jualan untuk melihat apa yang mereka perolehi dan cara mereka boleh memperoleh lebih banyak. Selain daripada memotivasikan pasukan jualan anda, Compass memberikan ketelusan lengkap ke dalam pengiraan sebenar di sebalik nombor dan pasukan anda boleh mempercayai nombor yang mereka lihat kerana mereka mempunyai keterlihatan tentang cara ia dikira.
Compass juga membolehkan anda mengautomasikan proses dan semua perubahan boleh dikendalikan dengan hanya beberapa klik. Ia juga menjimatkan banyak masa dan menghapuskan ketidaktepatan serta membolehkan pasukan anda meluangkan masa di bahagian kritikal perniagaan yang lain.
Dengan Compass , anda boleh mengendalikan implikasi cukai geografi dan pematuhan sebelum pembayaran insentif. Anda boleh mempertimbangkan mana-mana atau semua jenis pembayaran insentif seperti pemindahan bank, katalog ganjaran lebih daripada 20000 kad hadiah digital, kad prabayar, pengalaman dan dompet merentasi 80+ negara, nota kredit atau pindahan bank lama yang baik. Pembayaran boleh diuruskan merentas pelbagai geografi & mata wang 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!
