Rewards: 4 tips to motivate certainly

To motivate your sellers, it is customary to introduce an element of variable pay. For maximum efficiency, choose well your criteria, set clear objectives and accompanying persons.

1 EXPOSE THE RULES OF THE GAME IN UPSTREAM

Because you are afraid to formalize your commitment, you often wait for the end of the year to pay an informal and a bit random, a bonus to your sellers. “Look, this gratuity arbitrary meets only one who gives, says Fabien Bruniau, a consultant at Menseo Council, a consulting firm in compensation. For in the absence of predetermined targets, the employee deems the still insufficient and irrelevant to the performance achieved you’re looking to encourage and motivate, you have succeeded in generating stress and frustration! “To avoid such a pitfall , ensure that any premium is explained beforehand. In addition, the law requires you to write an addendum to the employment contract, which will be described in the mechanical award of these bonuses. The signature of this addendum gives you the opportunity to present each individual simulation system used. The opportunity for you to discuss with the person to find a consensus on its objectives and – why not – of some motivation.

And if you play the card incentive?

Device for collecting premiums for all businesses, incentives, tied to company performance is contingent on achieving a goal that can determine a leader: turnover, results, etc.. It is an inexpensive solution: the amounts paid as such are exempt from social security contributions for both employer and employee. In addition, placed on a company savings plan (PEE), they are exempt from income tax. Unlike participation (indexed on the result and compulsory from fifty employees), profit-sharing allows the employee to dispose of his money. Attention all profit-sharing agreement is concluded for three years. This commitment may seem long but know it can be renegotiated every year. For a trader, the main difficulty lies in the need to take legal advice in drafting the agreement. This service will cost about 1 000 Euros.
2 Quantity / quality: Test your COCKTAIL

Unlike the commission, which pays only the deed, the bonus allows great flexibility in the choice of criteria to reward. The indicators are or left to your discretion: qualitative or quantitative, individual or collective, monthly, or annual. You can combine up to four. “Beyond that, it’s too complex to manage, even counterproductive,” said Fabien Bruniau. You can adapt from one year to another in your strategy, in which case a new amendment to the contract must be signed. “Well made, a bonus scheme may affect your business,” says consultant Menseo Council. This is your year of opening and are looking to boost your sales? Choose a target based on volume sales. A year later, you give priority to improving your results? Indexing your calculation on the margin. With indicators from your income statement, such as margin and sales, you will also prevent any frustrations in your team not to discuss the results certified! But this does not prevent you to involve more qualitative criteria. “Promoting the quality of work is also interesting in terms of recognition, says Fabien Bruniau. A seller always appreciates that his bonus is not exclusively linked to turnover. “Why, indeed, not to reward the customers with kindness or the care taken in storage of the reserve?

For his part, Philippe Wallerich, consulting partner at CR & M Partners, recommends the implementation of a progressive system, correcting the perverse effects of annual objectives: “Imagine a salesperson learning in September, he has made only 50 % of Goal II did still four months to reach 100%. What is it? He lowers his arms. But if you thought the first line of award to 80%, it is stated. “Similarly, it is appropriate to provide an area of outperformance, 120% of the target instance. “In that case, allow at least 20% of higher wages or more. The goal is to provide a real advantage to the best, “resumed Philippe Wallerich.

Finally, keep in mind that to motivate the only financial reward, although important, will never be enough. Take care never pay a single euro before your seller personally congratulated for the work.
Expert Advice
Rewards: 4 tips to motivate certainly

Philippe Wallerich. Associate Consultant at CR & M Partners
“To be motivating, a premium must weigh half a month’s salary”

Establish a premium, fine. Make sure it is really effective is better! Philippe Wallerich, consulting partner at CR & M Partners, believes that a premium is really motivating if the amount exceeds one half month’s salary. “Below, it will generate more frustration than motivation. But the ideal is that the premium for a full month’s salary, “says he. The consultant of the consulting firm also said it should not make the mistake, very common to want to reward the performance of the vendor increasing his salary at year end. An increase can be justified only by taking responsibility for new or increased skills after a training example. “To reward performance, a premium is to be used, because you have no guarantee it will reproduce the same in the future,” said he.
3 JONGLEZ BETWEEN INDIVIDUAL AND COLLECTIVE

Leaders of small businesses are accustomed to think premium individual, not collective. It’s a shame, because over the team is small and a collective goal proved challenging. “In a team of three or four vendors, everyone feels real, can influence the outcome, said Philippe Wallerich. From a dozen people, there are more “free riders” who will receive the premium without effort. “The collective bonus is another benefit: it increases solidarity in the team. Manager of three clothing stores Hexagon, in Perche, Thomas Blonsky gives 100 Euro gross each of the two vendors as soon as the monthly sales target is reached. “The individual premiums can lead to a form of aggression on the part of sellers. In our independent stores, where it is important to retain our customers, we are sensitive to such effects pervers.4

Finally, remember to make regular appointments with your vendors to make the point: everyone should be able to estimate at any moment, the efforts he remains. You can also choose to empower them by giving them track their own goals. This is the method adopted by Thomas Blonsky, the merchant of Perche. Even if obtaining their bonus is subject to a monthly target, vendors meet every evening, a sheet detailing the daily objectives. “It is very effective in terms of motivation, says he. You know every day where you are if you’re ahead, you are calm and if you are late, you are encouraged to roll up your sleeves! “To encourage the vendors in this day-one seconds premium, “cashier”, completes the first 25 Euros gross per month to leaf goals conscientiously fulfilled.