How Does The Business Team Establish An Effective Salary Incentive System

2012-08-16   |   by CusiGO

Why many business leaders don’t care about team performance? Why the compensation system is not incentive for employees? Why the upper and lower levels of business colleagues are not closely connected? Why leaders crowd out excellent business colleagues? Why business leaders cover up inferior business colleagues? There is only one reason: there is a problem with compensation incentive.

Let’s start with our business colleagues. For business colleagues, no matter the salesman, business director, business manager, business director, business general manager or vice president, they should pay special attention to several important principles:

That is, the basic remuneration is low and the performance commission is high.

Basic remuneration refers to his basic treatment. Performance commission refers to the performance reward he can bring to the company.

Many people say that if the basic salary is low, I can’t recruit people. It’s very difficult to recruit people. In fact, it’s not very difficult, but it’s easy to filter the people you don’t want; it’s not that you can’t recruit people, but the people you don’t want won’t come directly, isn’t it time-saving and labor-saving!

If you hire people with low basic pay, it’s too difficult. Here’s an important piece of advice for you: at the most moderate level. Suppose that the basic remuneration of business personnel in the region and the industry is at least 1000 yuan and at most 2000 yuan, and you can give 1500 yuan at most. Then the performance commission should be on the high side. The salary system determines the focus and behavior of employees, that is to say, the basic salary can be low in the industry in the region, not more than the middle level; the performance commission can be high in the industry in the region, at least not less than the middle level. This allows the focus and behavior of the team to focus on performance outcomes rather than basic compensation.

Let’s say that in your company, business colleagues have different percentages for him according to his performance. For example, if a salesman does 5% of the performance commission of 100000 yuan, 200000 yuan will be better. We can give him 7% for 200000 yuan, 9% for 300000 yuan, and 1% for the part above 300000 yuan. Suppose that when he reaches 280000 yuan, he will want to make 300000 yuan. When he reaches 295000 yuan, and is still 5000 yuan short of 300000 yuan, he can’t develop customers from the end of the month to the performance deadline. He may take out 5000 yuan by himself and make up 300000 yuan. He will sell the product early next Monday morning. ——He thought to himself, this is my hard-earned money, I must sell it.

So “the more, the higher the principle”: when you do more, the higher the commission I give you; on the contrary, the less, the lower the Commission. If you do 100000 yuan, it’s 5%, 50000 yuan, 3%, 20000 yuan, 2%, 10000 yuan, 1%. You make a zero performance commission of 0%, even if zero performance is not a commission of 0%, but a commission of 100%. He is still a zero.

Even if the Commission is no higher, no performance is equal to zero.

Some people say that he didn’t have enough achievements, and you also reduced the proportion of commissions. Won’t he quit? If he does a job of 30000 yuan and 20000 yuan, it’s not that he doesn’t do it. If he does it again, we won’t let him do it if he wants to.

In your company, the superiors of business colleagues include business manager, business director and business general manager. How to evaluate the performance of these people? Why do business leaders not care about team performance? Because there is no direct corresponding interest relationship between business leader’s bonus and team performance.

Assuming that the bonus of the business leader is based on the “total Commission” of the business team, its power is huge. This is the key and secret to make your business manager, business director and business general manager full of motivation, performance and great combat effectiveness.

Suppose that your company’s business manager has 30 salesmen, then the salesmen who do well may receive 10000 yuan, 20000 yuan or 30000 yuan this month; the salesmen who do well generally receive 35000 yuan, 7000 yuan, 7000 yuan; the salesmen who do poorly receive 2000 yuan, 1000 yuan, 500 yuan; the salesmen who do worse may receive zero yuan. Together, 30 salespeople get a commission of 300000 yuan. If it’s 10%, the business manager can get 30000 yuan, 15% can get 45000 yuan. So the business manager will try his best to help the salesman get the Commission.

If the company wants to make money, it must select a good business manager. If the business manager wants to make money, it must select a good business colleague. From the bottom up, from the top down, their interests are all in one line, they will be one heart. What is a good system? It is to let good people stay firmly, find the value and happiness of being good people, and have the power to continue to be good people. Let bad people go out quickly and feel that there is no value left, but a kind of pain, and let them give up automatically.