Best approaches for handling commissions while scaling a sales team

It must not even must not be considered the complexity of the sales commission structure in the organization. It is imperative to develop a process that makes it easy for sales pillars (sales executives, reps, and the sales comp team) to access accurate data and motivate top performers. 

Of course, compensation management is a tricky task, but when you do it with the right approaches, it becomes handy to organize. Let’s discuss some of the best approaches.

Develop a commission chart based on historical data. 

A target-driven firm needs to be honest with what effects average employees make with commission-oriented pay. It demands professionals integrate historical data into the compensation plan to exclude loose ends as they put the plan in place. Hence, leaders need to look for loopholes in a plan before presenting it to the team. It is worth noting that a wrong commission-based plan may result in a high turnover. 

Ask your employees about their demands and requirements. 

One needs to understand that salespeople belong to different life stages and will factor in structures from a different perspective. Someone with a family and with fewer obligations would want to go for a salary and commission over a 100% commission-based structure. 

Thumb rule asks you not to put all employees in the same box. Instead, chat with them and see what it values first before choosing. 

The commission-based pay structure should offer exponential opportunity. 

The structure should offer an exponential opportunity to make commission successfully pays rollout. Choose one structure that offers exponential growth. Further, the opportunities should be more than the actual pay. 

An employee that lives on a commission-based pay has a hunger and gets driven by the zeal to out-earn a salary amount.

Find a structure that promotes improved customer service. 

We operate in an industry where a subscription renewal plan results from paramount customer service. A commission plan develops a tiered commission structure. Hence, it works well for a salesperson. 

It has a couple of service-related KPIs. It adds on an accelerator to ensure that a salesperson serves account post-sale. 

It is better not to reset goals based on past year data. 

Resetting goals for a commission-based employee, relying upon past pieces of data is punitive. It is obvious for productive employees to withhold a firm quarterly. Book the client, reward the employee and set a reasonable goal for years to come. 

It has been proven that a commission is a way to incentivize hard work. Employers must ask whether a commission-based structure would work in the long run or not. It is rewarding to close a sale. It is more so when the deal doesn’t get commissioned. 

When you provide productive employees with incentives, it creates a difference in the profitability of the firm.

Conclusion

Following all the above-given approaches improve the relationship with the sales team that will ultimately boost your overall company’s performance.

EleveateHQ is  a leading commission management software that can integrate with any CRM software and allows you to track and improve your commission plan performance