Get on target

In the world of sales, a position’s stated salary is often just the start of your earnings. Reward systems are a traditional means of motivating a sales team. So when it comes to bonus pay, which is the best saying to live by: ‘money makes the world go round’, or ‘money can’t buy happiness’?

Performance-related bonus

For those that believe that ‘money makes the world go round’, a bonus based on performance is a good option. According to the Directgov website, ‘Performance related pay is a way of rewarding employees for higher performance’. By being set individual targets to reach or receiving commission per sale, salespeople can effectively control their own income. The downside of this is that it may mean people concentrate more on quantity instead of quality.

Finding extra money in your pay packet as recognition for the hard work you do can be a great feeling, but when a bonus is instead a target to be met, how does that affect a sales team? Sales rep Tora Willis from GVA Systems says: ‘It’s great to know that if you meet your target you’ll get a bonus, but it doesn’t make the team work well. Everyone’s too focused on reaching their own target and at the end of the month it’s hard to get help from the rest of the office.’

Team bonus

An alternative to performance related pay, where individuals are rewarded for their work, is a bonus based on the performance of the team as a whole. This can stop the breakdown of teamwork as with individual bonuses and can often help a team to work together well, and improve their performance. However, this type of reward system can sometimes lead to ‘peer pressure’ in the workplace, as colleagues expect everyone to work as they do.

Craig Hudson from roofing company Newtopia suggests that ‘it gets frustrating when you know you’ve put in a lot of effort on something and someone else hasn’t, but they’re going to end up getting the same bonus as you.’ However he did also say that having a team bonus can be a good way to get staff to learn new skills. ‘If something needs doing and no one’s free then you learn how to do it, so not just you but everyone benefits.’

Perks and incentives

For those whose think that in fact ‘money can’t buy happiness’, the perks and incentives scheme might be better. Instead of monetary rewards, employees are offered days off or days out, and ‘prizes’ for doing well. This type of bonus system is often less focused on targets, and more on recognition of achievements. 

Simone Everhart, who works in recruitment, says: ‘It’s like a monthly award celebration - the best department, the person who got most people into work, who got the biggest client, who the office thought worked hardest this month.’ The ‘winners’ are taken out for the day, often to team building exercises like paintballing or go-karting. When asked about not receiving any extra money, Simone says: ‘You didn’t notice it, you knew what your wage would be every month. Although sometimes, it would be nice to be able to spend your reward in your own way.’

It seems fair to reward people according to their performance, and recognise their achievements. However, the means of rewarding staff differ from company to company, and will often depend on what is considered most important to get out of the staff; whether it’s quantity, good teamwork, or a sense of recognition. It also depends on the person as to whether they will work well under that particular system, and what will help their personal growth in the company.

It is not only the employers who have a choice over how they want to reward their staff. Employees can choose too, by selecting who to work for according to how they want to be rewarded. Bonus schemes are a part of the majority of sales companies, so think carefully about what it is you want from a position, and what will make you want to work harder. Maybe you agree with the person who said: ‘Money is not the most important thing in the world - love is. Fortunately, I love money.’

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