Effective rewards and incentives for your team

You probably have a pretty solid idea of ​​the personality types that make up your team. You’ve also probably figured out what your team’s strengths and weaknesses are. Based on where your team is located, you can start designing rewards and incentives to produce exactly what you are striving for. In doing so, there are some general rules of thumb that it is useful to keep in mind.

First of all, always remember that what is considered a great reward can vary depending on the individual and the particular circumstances. Many successful managers suggest mixing individual incentives with team rewards. In this way, you are meeting individual needs while fostering cooperation and keeping the focus on company goals. Incentives that are based on group performance also help salespeople become better team players and have a sense of ownership of company goals. In this way, they can feel some internal motivation and personal satisfaction from seeing a job well done instead of always depending on some external and temporary factor to motivate them.

A fair warning, however, is that incentives often lead to a warning of the diminishing returns trap. What I mean by this is that a certain reward will lose its impact over time if it is used too much. That is, instead of feeling rewarded, people will expect the incentive as an automatic return for their efforts. The flip side of this issue is that when the reward is removed, the good behavior will also disappear. Reward-based motivation is an external influence rather than an internal one. It’s worth noting here that big, tangible rewards can definitely give your salespeople something to look out for all year long, but don’t neglect smaller incentives. Saying thank you, noticing a rep’s extra effort, helping a rep get through a slump, and just the daily acknowledgments can go a long way and will contribute to your team-building efforts as much as big year-end bonuses will.

With any great incentive program, you have to spend time promoting it. Obviously, a great one-year incentive program will fail if you only mention it once. If you want an incentive program to generate maximum return, you need to promote it by providing your team members with weekly updates, newsletters, short-term incentives, etc. Find ways to keep the momentum going to make sure the program pays off. Anything creative, fun, or different that you can do will make your program more effective. It is also very helpful if there is a prominent visual reminder whereby the team can see the countdown to the end of the program.

Below is an extensive list of reward ideas that you can incorporate into your motivation efforts. Some can be applied in the short term, others in the long term. Some are team rewards; others can be tailored to individuals. Some will work great for your team; others will not. See what works best for your team’s situation. Often it’s just a matter of finding something fun to break the tedium of the sales cycle. In terms of physical merchandise, remember that the value in the eyes of the seller will be much higher than the actual price. The cash disappears, but your customer will always remember that their laptop, TV or whatever came from your company.

Just a few more basic guidelines: 1) Make sure your salespeople understand what is expected of them, whether they are being rewarded or not. It is not wise to reward a salesperson for minimal work. Once the basic requirements are consistently met, then you have a starting point from which you can set higher goals. 2) Make the incentive program schedule clear so everyone knows exactly when it starts and ends, and exactly what is required in the interim. 3) Set the reward up front so people have a clear vision in their minds of where they are working towards. Remember that while cash is exciting, other incentives can often be more powerful. The actual dollar amount of an item and the value that the recipient places on that item are two different things. If money were enough, why wouldn’t a salesperson who works on commission be excited and motivated enough every day? 4) Whenever possible, use rewards that can be shared with friends or family. For example, such a reward could be a free dinner for two at a nice restaurant. If the rep can share the results of their efforts with others, the incentive will be more exciting and drive them to do better.