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How to formulate the salary of sales staff
All of them show that the sales team is the direct workers of the company to make profits. However, this team is the most mobile, how to stabilize excellent sales talents? It is very necessary to establish an effective salary system, which not only encourages sales staff to create achievements, but also satisfies their sense of job accomplishment. 1. Salary structure Compared with the personnel in functional departments, the salary of salespeople shows great differences in structure. Take the dual salary system as an example (basic salary+performance salary), in which performance salary should account for 6% or even more than 7% of the total salary. This has something in common with the annual salary system of operators: the basic salary is only the salary income to maintain the minimum living standard; Performance pay should account for the vast majority of total wages in share, and it is closely related to individual and team performance. A common mistake is that enterprises set a relatively high basic salary for salespeople for the purpose of retaining employees. In this case, the impact of personal performance on personal income will be greatly reduced, which will inevitably lead employees to relatively ignore performance pay, and the incentive effect of salary will be weakened, so it is naturally difficult for enterprises to improve their performance. However, this practice is not without its merits. For some new salespeople, because they are not familiar with the business, their basic salary can be raised accordingly at the entry stage to ensure their normal income. However, in terms of the total amount, the overall salary of new employees can be lower than that of normal employees through the adjustment of the commission ratio. Only in this way can we ensure that they work harder on the right track and improve their performance. 2. How to tilt? I often hear the bosses of many companies complain to me that they have given the salespeople a great tilt in salary. The salaries of the salespeople in the company are very high, but why is the company's operation still not improving? I immediately asked them: if your employees can already enjoy very high salaries under their current performance, why do you think they should bother to improve their performance? Everyone is happy, and everything will be fine if we keep the current level. Therefore, tilt is not just a simple salary increase. Recently, a company just finished the salary reform and showed me the salary curves of their two policies before and after. According to their "inclined" view, the salary of sales staff has been raised by a whole level, but the operating results are not ideal. It can be said that I made the mistake mentioned above: I can earn more than 1 thousand a year as long as I keep my current level, and I won't get much more by increasing my performance. Then what am I fighting for? The so-called tilt, the fundamental purpose is to improve performance through salary incentives, that is, the so-called "under the reward, there must be a brave man." And once the salary increase is decoupled from the performance, what can be the stimulus? Afterwards, I lowered the salary starting point of that enterprise by two grades, but the percentage of commission increased by one grade as a whole. According to this practice, if the employee maintains the status quo, his salary will be reduced; But as long as it can grow by 5%, it can be the same as the original; As long as we can increase by 1% according to this year's plan, the salary will be much higher than before; If you exceed the plan, you will get more rewards. Of course, not all enterprises have to cut wages, but at least not too much. After all, performance is the "foundation" and salary is the "end", and the relationship between them cannot be reversed. 3. Goal setting Goal setting has always been a major difficulty in the salary setting of salespeople. As an enterprise, of course, I hope to set a higher goal, which is good for enterprise performance; From the point of view of sales staff, they often want to set the target lower, which is easy to complete and has less work pressure. After exceeding the target, the commission will be more. For different purposes, enterprises spend a lot of energy and time in setting goals every year, and the final result is not necessarily good. This kind of "gallants" bargaining makes the work plan of the enterprise very confusing. Because there are too many targets declared by employees, managers can't determine what level the performance will be this year. Personally, I think that the best way is to set up multiple systems according to the number of goals, but the commission ratio of each system is different, and people with high goals also get more commissions in the same state. For example, maybe I set a goal of 1 million at the beginning of the year and finished 2 million, so my commission ratio is 15%; And my goal is 1.5 million, and I have completed 2 million, but my commission ratio may be 17%. In this way, employees can be effectively restricted, so that they can choose the target system that suits them according to their own strength without setting it too low. But some readers may ask: if so, then I choose high goals and get high commission. What if I can't finish it by then? This will be limited by the commission ratio I will talk about below. 4. Commission Proportion At present, the salary system of most enterprises generally adopts a progressive system, that is to say, the increase rate of commission ratio is faster than the growth rate of sales. For example, the percentage of commission for sales below 1 million is 1%, the percentage of commission for sales above 1 million is 11%, and the percentage of commission for sales above 2 million is 16%. The reason for this is simple: when the sales volume reaches a certain amount, more efforts must be made to make the same proportion of growth, so the percentage of commission for rewards should also increase accordingly, so as to achieve the purpose of encouragement. But in practical application, the direct consequence of this approach is: saving the list. That is to say, save the current order and declare it together with the next issue. The effect of this approach is very obvious: assuming that the sales for two consecutive months are 1 million, then according to the above award ratio, employees should get 1 * 1% * 2 = 2,; And if the employee "saves the list", then his income should be 2 * 16% = 32,! Imagine in an exaggerated way that if an employee wants to get the maximum income, then he should accumulate all the sales for twelve months of the year until the last month of the year, then the income he can get is the largest. This is not my personal fabrication, although it is a bit exaggerated to save for twelve months in a row, but by comprehensive comparison, it is not uncommon for the sales volume to soar in the last quarter. Therefore, to sum up the above discussion. In my opinion, the salary system of salespeople should be a multi-system and comprehensive system with decreasing commission ratio. At present, there is a kind of "7S salary system" in the industry, which can be said to meet the above characteristics well. It is represented by images, as follows: First, according to the different central goals, the sales staff are set to 7 grades; Secondly, set the commission ratio curve with the same shape for each grade. The benefits of doing this are as follows: (1) Employees choose their goals according to their own strength. The high-level selection target is also high, which can ensure that he has a higher commission ratio; The average newcomer can start from the lowest level and ensure his own income; (2) The percentage of royalty decreased rapidly, but increased slowly. If the goal is not achieved, the employee's income will be greatly affected due to the sharp drop in commission; If the target is exceeded and the income rises slowly, employees will consider whether they should choose a higher grade. In this way, the difficult problem of goal setting is transferred to employees, who can choose according to their own strength. (3) Relatively stable. Accidents are not ruled out in real life. However, in this way, due to the restrictions caused by personal goals, even if you win the lottery of 5 million, your income will not change on a large scale, and it will not affect your future income and performance. (4) Because the shapes of the curves are consistent. Therefore, although there are different abilities and goals, the incentive effect is the same. (5) Because the target is relatively stable and close to reality. In this way, at the beginning of the year, it is easier to implement the future budget and plan, and it is more accurate and true. 5. After the performance appraisal has finished the salary system, is everything all right? Not so, on this basis, we should also assess the performance of employees, so as to adjust the salary of employees again. Many people think that my sales are not my assessment indicators? Why do you need to make another evaluation? It is precisely because of this idea that the performance appraisal of salespeople is often ignored. In fact, sales volume is effective under normal circumstances, but it is not the fundamental form of corporate strategy. Because of the different product profits, it is possible to sell a certain product, with a large sales volume but little profit; Maybe I have launched a new product. Although the sales volume of salesmen is not small, the promotion of this new product alone is not ideal. Maybe my goal this year is to expand market share, not to increase profits; Perhaps this salesman has adopted a "kill the goose that lays the golden egg" style of sales. Although the sales volume is large, the customers are not satisfied with the products and after-sales, and so on. These are all beyond the scope of the "sales volume" indicator. Therefore, in the assessment of a salesperson: * Business indicators should account for an absolute proportion. But this business indicator is not necessarily sales. It should be combined with the strategy and plan of the enterprise this year. In other words, what do enterprises pay attention to this year, sales volume, profit, customer satisfaction, market share and new product market share? In short, the strategic intention of an enterprise should be fully reflected in the assessment, not just a fixed indicator. * Complemented by other indicators. Including learning and growth, personal behavior, personal ability and so on. These indicators may not account for a large proportion, but they can effectively encourage the growth of sales staff. Moreover, from a long-term perspective, the improvement of employees' ability is a prerequisite for achieving long-term sustainable profitability.