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Frustrated by incentive experiments
that don't get the job done?
FOUR.6
The Art of Motivating Between Commission Checks
Day-to-day, almost-invisible incentives to performance can help keep a salesperson high on energy, enthusiasm, and creativity—even in the face of frustrations, rejections, and disillusionment of the real world.
These incentives or reinforcers determine how much and how quickly a person will produce, by incorporating the payoff principle.
The payoff principle operates very simply. Any activity will continue or will increase if salespeople enjoy doing the particular activity, and receive positive reinforcement for doing it.
Conversely, if salespeople do something difficult or unpleasant that is ignored or criticized, the probability is high that they will stop doing it if they can figure out how.
This principle operates on all behavior. You cannot choose to opt out of it. You are in it.
The secret is to understand the payoff principle. Use reinforcement techniques to bridge the gap between short-term, unpleasant or difficult activities, such as cold calling and sector analysis, and long-term payoffs such as commissions.
Recognize the power of approval—and don't underestimate the effect you are having on your subordinates' performance.
Nine Things to Remember
- Money without respect and approval has a long-term negative effect on most people's energy.
- Raises tell people that they are appreciated. Bonuses do the same, but you get better performance next month and next quarter if bonuses based on concrete measures can be earned again.
- Measure people against their own performance, not other people's. Reinforce improvement.
- Avoid contests which reward only one or two people. Create team or buddy contests or have people work for percentage improvement.
- Don't trust what people say about reinforcement. Many say they just want money. Appreciation is an important motivator, but people are often unable to ask for it.
- Noticing improvement and immediate reinforcement is primary.
- Keep bravo cards, applause notes, or other items on hand that make reinforcing on the spot easier.
- Design a point system to give daily or weekly points as an immediate reinforcement for a longer term payoff. For example, weekly goals can be scored by percent accomplished. That percentage can be converted to points (60% = 60 points). A goal of 300 points can usually be earned in four weeks using this formula.
- A combination of surprise social reinforcers with some contracted pay-offs usually works best.
Maximize Reinforcement
The payoff or reinforcement is most effective in improving performance when:
- It is immediate (given right after the performance).
- It is contingent upon performance.
- It is sincerely given in appreciation for improvement or maintenance of performance.
- The recipient proves clearly and specifically what he or she has done right.
- The reward is of value. Management had to exert some effort to get information and had to find something meaningful.
- The reward is done with fun, creativity, even joy, and surprises.
- Praise is not combined with criticism. Don't ask, "Why don't you always do this."
- Tangible reinforcement proves sincerity. Put your money where your mouth is.
Start slow if you feel this is too ambitious. Perhaps you could just notice who is improving on reports or increasing calls. Make a phone call, write a note, or fax a happy face.
Be specific about what you like—and do it now! You'll enjoy your job more as you concentrate on appreciating your salespeople's success.
Greene Training International
P.O. Box 132, Lake Forest, Illinois 60045
Phone: 888 524-5200 Fax: 847 234-2963
Email: info@esalesmanager.com
©2006 Greene Training International
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