There are several theories on needs and expectation: Maslow’s hierarchy of needs, Dale Carnegie’s 8 basic needs, classical models based on stimulus response, achievement, expectancy, equity and 2 factor theory. Each of these theories entails that each individual has different needs at stages of life. Sales managers need to understand what is important to salespeople so as to motivate them. Monetary rewards satisfy our needs of psychological/basic needs such as food and shelter for which without it is impossible for us to exist.
Generally all needs are met in our daily life expect the feeling of importance i. e. self-esteem. Non-monetary rewards are targeted to satisfy our needs of achievement. Monetary rewards includes salary, commission, bonus and contest motivate salespeople to work towards sales target. Companies are also introducing variable bonus, entertainment allowance and stock option as additional income. Rewards should be planned to associate immediately with job completion; time gap will reduce the effect of motivation.
Non-financial rewards with no direct gain include reimbursement of transportation, telecommunications and entertainment expenses. Examples of fringe benefits are low-interest loan, medical and dental care group insurance, incentive trip, scholarship, and company car and corporation credit card. Non-monetary rewards are more complex and difficult to plan achievement, advancement, responsibility, recognition and work perception. People feel good and sense of importance when they are given responsibility. Certainly they must be given ample empowerment.
High performing salespeople are in search of achievement and advancement; they may be promoted to a higher position such as sales executive and sales manager. Work perception plays a role in motivating salespeople, as they perceive that their role is significant to the sales team i. e. belongingness. Recognition is form of encouragement. Gifts, awards and certification of achievement details company’s appreciation for their contribution. Gifts must be different each time. The same salesperson will find 2 micro-oven redundant and urge for other appliance.
Thus different gifts increases the excitement and intensity of sales contest. Awards and achievement certificates are way to appraise salespeople: Golden awards and Million-Dollar club. A public event is hold to award the salesperson in front of their supervisors and peers. Salespeople are motivated when another sales is closed. Management should look into providing marketing skills further mature sales team’s selling skill. Thus training is part of motivation and crucial to contributing to their sales career.
A carefully planned career path/personal growth entails their development, secure their future. Job security may not be a motivational but more of a hygiene factor, i. e. when present, not much effect on morale but when lack of will shaken the moral. Motivation is never a tool to be neglected in managing an efficient sales team. Knowing salespeople’s achievement tells the stage of needs that they are in. Understanding each individual’s different needs and therefore apply different rewarding strategy raise the morale and productivity of the sales team.