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One of the questions that companies ask when it comes to using sales contests to motivate their sales team is what to ultimately award them with. What should the lead salesperson each month or quarter receive as far as recognition and reward? Should the runner up also be included? In this post, we’re going to look at common ways to reward top performers in your sales team, plus the pros and cons of each type of reward.
One way that companies motivate their top performing salesperson is with a higher commission rate for the sales they make. It’s actually a great idea for one reason. The reward increases with the performance. A flat dollar amount bonus is great, but it is static. If your top salesperson sees that they are leading for the month or quarter, and there’s no chance of anyone catching up, then they might not feel motivated to continue pushing through more sales. But if they know their sales this month will have even more commission than usual, it might be an incentive to keep pushing more sales through.
Another great way to reward your top sales performers on a monthly basis is with additional paid time off. Your top salesperson can choose to collect their earned days for an extra week long vacation, or use them to create a three-day weekend for themselves. On one hand, this is a great way to tell your sales leader that you appreciate the hard work they have put in during the month, and you would like them to celebrate it the way they choose. On the other hand, because this person is such a hard worker, they might not be the type that would choose to work less. So give this option some thought, especially with the usual people who lead in sales to determine if this would be something they would appreciate. An alternative to a paid day off would be a day to work from home. Allow them to work from home, from the beach, or any other location they choose outside of the office.
Over the course of the year, you may have one salesperson that consistently leads your sales team, or a few people that are consistently either in first, second, or third place on your leaderboard. For large companies, taking everyone on a company-sponsored vacation may not be feasible. But taking your top sales performers for the year on such a trip is. The key with this reward is determining if the top sales performers in your company would want something like this, whether they would want to go alone or bring family, or whether they would simply want a bonus that would allow them to do a trip like on their own if they so choose.
Studies have shown that more prizes increase sales effort and performance more than limiting rewards to only the salesperson leading the pack. The leader, of course, should receive the best prize. But the salespeople in second and third place shouldn’t feel left out as they are still your top performers. Looking at prizes mentioned above, you should be able to easily see ways to make the reward appealing for each level of winner. For example:
Your top performer gets the best accommodations (like the penthouse suite) while the runners up get standard accommodations. Or maybe the top performer gets to choose the location of the retreat. The key is to make sure that your leader feels the most appreciated and that all of your key performers also feel that appreciation. The last thing you would want is your second or third best salesperson leaving your company because they think they are not being recognized for their accomplishments, even if those accomplishments do not make them number one.
All of these options are great ways to celebrate your sales teams success, but what is even more important is how you celebrate the daily wins and keep each employee (even those that don’t perform in the top 10%) highly engaged. Part of what helps keep team members motivated day in and day out is having clear visibility of their goals and the progress they have made. Hoopla’s Motivational Platform helps employees reach their sales goals by celebrating the daily wins ultimately leading to higher engagement and therefore increased sales. The platform becomes a defining element of company culture as its visual nature amplifies individual and team wins.