How to Pick the Right Compensation Plan for Your Team

Employee compensation is not a topic you should gloss over. Your team wants to get paid fairly and in a way that matches their performance and duties. While compensation plans might seem cut and dry, there's no one-size-fits-all option.

With this blog, we aim to clarify standard compensation plans and give you an idea of how to pick the right one for your team.

Hourly Compensation

When you pay your employees hourly, you're paying them for the time they spend working. It's as simple as that! You set an hourly rate, and your team gets paid for how long they're on the clock. Adjusting sales compensation plans for hourly workers is pretty easy as well.

Some view hourly workers as expendable, but it's a desirable compensation plan for many because it means employees are nonexempt from the overtime provisions of the Fair Labor Standards Act. It's an excellent option for money-motivated workers who want to take advantage of available overtime hours. Those who have fluctuating availability usually prefer it over other compensation plans.

Salary Compensation

With a straight salary compensation plan, your employees get paid a set amount. Usually, you establish an annual salary, and your team isn't eligible to receive overtime. So, what's the benefit of salaried plans?

Generally, salaries provide more flexibility in scheduling and where they work. With this plan, no one has to log hours, and there's more freedom in how people want to work. Most employees who aren't involved with direct sales will benefit from a straight salary compensation plan.

Salary Plus Commission

With salary and a commission, your team gets the best of both worlds. The salary provides some security and ensures that your employees get paid even during slow periods. Meanwhile, the commissions motivate them to contribute more to the bottom line.

Your sales team will usually prefer this plan. It rewards performance and provides plenty of room for growth. Adjusting sales compensation plans is a breeze with the right tools. As a result, you can continue to push your team further.

What Compensation Plan is Right for Your Team?

Those are just a few of the most commonly used plans. What's right for your company will depend on many factors. Have an open discussion and determine which option will reward your team the most.

Read a similar article about company culture in sales here at this page.

The Best Ways to Sell in a Weak Economy

Selling in a down economy is a task that no sales rep wants on their plate. Unfortunately, it’s just the reality of the sales environment sometimes. With that being said, people are still buying products and services to a point, regardless of what the economy is doing. Instead of getting disheartened, it’s a good idea to change up your sales tactics. Here are some of the best tips for selling in a down economy:

Take An Aggressive Approach

The act of selling in a down economy won’t happen if you just wait for the sales to come to you. You might have to take a more aggressive approach to sales than you might normally. This means chasing down prospects and generating as many leads as you can. Make sure to go for every sale, rather than dwell in the less than ideal situation you find yourself in.

Try More Palatable Pricing

Adjust your pricing to fit the economy. People may not want to buy your product or service outright, but the subscriptions and financing plans might be more tenable. If you’re able to take the hit, offering discounts is another good idea. You could even offer discounts through referrals. For instance, if a customer is able to get two other prospects to sign up for a subscription, that customer can get some of their months free. Speaking of referrals.

Don’t Be Afraid to Reach Out

It’s a good idea to network with your return customers and see if they don’t mind referring you to parties that might be interested. Remember, the more promising leads you can find the better.

Don’t Give Up and Keep it Simple

Sometimes the best advice is to just stick with what you know and go for it. Sometimes running through your script and continuing to work your sales process will pan out. If it isn’t, then you know it’s time to switch up your tactics and try something new. By taking the challenge in stride and facing it head on, you’ll give yourself the best opportunity for success.

Read a similar blog about sales commission here at this page.