Click the image for details Text by Shengchu Consulting Qian Lizhong Edited by Chengyu Whether for manufacturers or distributors, the biggest challenge in management is the difficulty of managing sales staff. Why are sales staff hard to manage? Overall, there are three reasons:
First, each person's abilities, skill levels, and cognitive levels vary, leading to differences in how they view problems, do things, and understand instructions.
Second, the low entry barrier for sales positions leads to a prevalence of nepotism, forcing managers to rely more on emotional management than institutional management.
Third, many managers believe sales staff are results-oriented; as long as monthly sales targets are met, they can adopt a laissez-faire management style. However, this leads other sales staff who cannot meet targets to follow suit, and eventually, everyone becomes unmotivated. To get sales staff moving and achieve set goals, it is essential to introduce a compensation and performance management system that motivates them through five aspects: base salary, benefits, performance appraisal, recognition and promotion opportunities, and work-life balance. I. Base Salary is the wage that ensures sales staff can meet basic living needs and compensates for their time or labor.
- Composition of base salary: basic wage, position wage, seniority allowance, various subsidies, and overtime pay.
- Base salary standard: Set based on local average wages and industry average wages, preferably above the industry norm. II. Benefits are compensation provided by the company to employees beyond base salary and bonuses, aimed at increasing employees' sense of belonging and strengthening corporate cohesion.
- Benefits should avoid egalitarianism and the "iron rice bowl" approach; they should vary based on contribution, position, and tenure. The principle is: greater contribution, higher position, and longer tenure lead to better benefits.
- Benefits should be diverse and optional. Employee benefits should combine in-kind and monetary forms to satisfy both material and spiritual needs. Content should not be monotonous but varied, such as holiday gifts, birthday red envelopes, and company anniversary trips. Additionally, while keeping overall benefits unchanged, the company should offer a portion of benefits for employees to choose, which further stimulates enthusiasm.
- Employee benefits should be adjusted timely and not remain static. Benefits should be adjusted according to market changes and shifts in performance appraisal direction, ensuring the company's benefits remain competitive in the industry. III. Performance Appraisal is the best means to effectively tap into the value of sales staff and is a guarantee to get them moving.
The five elements of goal setting: goals must be specific, not ambiguous; measurable, not abstract; achievable, not overly ambitious; relevant to other goals; and time-bound.
Strictly implement appraisal standards. Implementation must include three points: first, assess both process and results, with results weighing over 70% and process no less than 20%; second, inspections must be fair, just, and transparent, with no favoritism that compromises fairness; third, rewards and punishments must be promptly delivered, ideally on the spot during summary meetings.
Feedback on appraisal results. Many think performance appraisal ends with rewards and punishments, but that is not the case. Feedback is essential after appraisal so sales staff understand why they failed to meet targets and what needs improvement. How should appraisal feedback be conducted? Five points suffice:
First, determine the content of the discussion;
Second, share work experience with the interviewee;
Third, develop a performance development action plan for the salesperson, teaching them how to achieve goals systematically;
Fourth, identify obstacles in the interviewee's work and help overcome them;
Fifth, let the salesperson elaborate on key points for better recording. Through these five points of performance feedback, sales staff will improve in the next appraisal. IV. Work Recognition is the driving force for sales staff to work hard, and promotion opportunities are the source of their dedication.
- Good work by sales staff should be recognized to give them motivation to continue. Supervisors or bosses should actively praise and reward sales staff who perform well. Supervisors or bosses can affirm sales staff's work in three ways:
First, material rewards: when good performance is observed, publicly give gifts or red envelopes to encourage continued excellence and set an example for others;
Second, verbal praise: combine face-to-face praise with praise in meetings, making sales staff feel their efforts are worthwhile;
Third, spiritual rewards: turn good work examples into case studies for the whole company to learn from and apply.
- Promotion opportunities are the source of dedication. Everyone works to get promoted and receive raises. If promotion and raise opportunities are stifled, it kills sales staff's enthusiasm. Therefore, distributors should establish a comprehensive promotion system. A complete promotion system must include four aspects: promotion principles, promotion conditions, promotion procedures, and promotion monitoring. There are three promotion principles: first, internal promotion is primary, external recruitment secondary; second, promotion by levels; third, both promotion and demotion. Those with good conduct, outstanding performance, loyalty to the company, and no disciplinary violations are eligible for promotion. The three steps of promotion are: first, screen candidates; second, submit promotion reports; third, defend and have the highest-scoring candidate appointed on the spot by the promotion committee. Promotion monitoring must assess the promoted person's performance within three months; if they fail to meet job requirements, they should be immediately returned to their original position. V. Work-Life Balance resolves sales staff's worries and is a guarantee for their hard work.
- Ensure sales staff have one fixed rest day per week. Everyone has personal matters to handle, and a fixed rest day makes it easier for them to plan. Of course, the premise is that the area's goods supply is not disrupted.
- Open two bank cards for sales staff: one in their name and one in a family member's name. The personal card is for regular salary, while the family card requires the family member's signature and is used for performance bonuses. Having family members receive work compensation greatly benefits family stability.
- Organize one to two team trips per year that include family members and children, allowing families to experience the work environment and atmosphere, dispelling unnecessary concerns, and better supporting the employee's work.
- Send holiday gifts to sales staff's parents and慰问金 (condolence money) for illnesses. This increases a sense of belonging and encourages dedicated work. Click the image for details The 3rd (CFIC) China FMCG + Internet Conference will be held in Chongqing in October 2017. At this conference, New Distribution has invited 1,000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment institutions to participate. The theme of this conference: New Forces, New Ecosystem. We will invite well-known domestic B2B industry experts, mentors, and B2B platform founders to discuss the following topics:
How can the FMCG industry leverage B2B to achieve new growth opportunities
How to build the new supply chain behind new retail
How can intra-city logistics help B2B achieve leapfrog development Highlights of this conference: The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper"
B2B and investor project closed-door matchmaking session
Conference site + exhibition center, dual internet technology exhibition
Leaders from Alibaba, EASIA, Best Store Plus, GLP, Unilever, Hd, Yunmei Shares, and other top companies will deliver keynote speeches sharing pioneering views. October 17-18, 2017 Chongqing International Expo Center Registration is now open. Long press the QR code below or click "Read Original" to register. Early bird tickets before September 15 enjoy a 30% discount! Add friend and note "Conference Registration" Click the links below to review the highlights of the first and second FMCG + Internet conferences: 2016 "FMCG + Internet" Summit Forum 2017 (2nd) China FMCG + Internet Conference Click the links below to review the highlights of the first and second FMCG + Internet conferences: 2016 "FMCG + Internet" Summit Forum -END-