In human resource management, the bulk of the concern lies in the motivation of the employees; this is in the knowledge that an organizations performance is directly related to the personnel’s output and also motivation. A huge expenditure of the human resource department is spent on employees motivation be it financially or through other organizational programs. A key component of organizations personnel is the sales persons. They act as a link between the organization and the consumers; they shape the image of the organization and represent the core link in the chain of distribution.
How to motivate these groups of people remains a major issue in the knowledge that they stand in a pivotal position in the achievement of the company’s major objective; profit maximization. There are various ways through which to motivate sales persons, money however is touted as the key method. This paper analyses the theory of whether paying the salespersons enough money will adequately motivate them. Indeed, there is unanimity amongst business analysts and scholars that monetary benefits comprise the greatest motivator of sale persons.
This arises mostly due to the fact that sales person’s total earnings are pegged on the amount of sales that he or she makes. Though there are various methods to compensate a sales person, commission based remuneration is the most common. This is where the rewards are a percentage if the total sales hence meaning the more one sells the more one earns. The basic motivation of every workers is remuneration, similarly for the sales persons, the financial rewards are important, as Bruce (2007) observes, “even with great sales people, you must pay them right, which will motivate them to do better.
” (102) To understand the centrality of money in the motivation of sales people compared to other type of employees, it is important to analyze the existing structure in an organization and the systems of moving up the ladder in an organization. Calvin (2004) analyses this issue noting that most organizations do not hire sales people into the strategic level mostly limiting them to the tactical and operations level. To other employees in an organization, the prospects of a rising up the organization ladder may diminish the desire for a higher pay scale.
The vertical movement of a sale person, career wise, is limited and hence monetary motivation is the key, “money represents an important motivator of salespeople. ” (Calvin, 2004, 171) Indeed, if a company is willing to motivate its salespersons more, it must also be willing to have a financial commitment. As has been pointed out, salespeople take up a huge chunk of the human resource, their costs ranging from “direct compensation, fringe benefits and reimbursed expenses.
” (Calvin, 2004, 171) To cover such expenditure and reduce the cost of sales per each unit, they must be highly motivated and financial rewards remain the best strategy. However it has to be emphasized that it is not the prospects of earning more that can motivate but such earnings must be pegged on the performance of the individual salesperson. Awarding a 3% increment across the department due to the prevailing economic conditions will not necessarily increase sales.
On the contrary, a bonus increment based on a certain range of sales will no doubt increase sales by an amount proportional to the bonus. It is common knowledge that most salespersons work better when they have a worthy goal on sight. If the pay is not commission based but is based on sales targets, most salespeople will prefer to relax or hide contracts only to reveal them in the following month to assist them hit the set targets. On the other hand, when a wage increase is directly a function of his or her performance; a salesperson will double his efforts to ensure a handsome perk.
However, as is widely pointed out in most research, money is not the only motivator; salespeople work in a highly complicated environment and encounter various problems in their work. Money alone hence cannot be the sole motivation. As Calvin (2004, 171) agrees, “money is not a universal incentive. Sales people reach comfort zones and complacency plateaus. ” Hence, in additional to money, there must be other factors that will motivate salespersons. Recognition has been pointed out as one method where the achievements of a salesperson are recognized and a certificate of achievement awarded to the high performers.
This introduces an aspect of competition with the best salespersons awarded in front of their peers. A vacation or days off is another non monetary strategy of motivating the salespeople. As Lee (2004, 130) emphasizes, “non-tangible rewards are sometimes effective that tangible ones. ” It indeed has been observed that paying salespeople well will motivate them and increase their output. Money is the key motivator and the prospects of making more money motivate them to work harder.
However, money alone cannot do the trick, other motivation strategies such as recognition and vacations also play a big role. Bibliography Lee G. (2004). ZenWise Selling: Mindful Methods to Improve Your Sales . . . and Your Self. Telsius Publishing LLC. Robert J. C. (2004). Sales Management. McGraw-Hill Professional. Bruce D. K. (2007). Marketing in the 21st Century: Company and customer relations / Linda M. Orr and Jon M. Hawes, volume editors: Integrated Marketing Communication. Greenwood Publishing Group.