Calculating KPIs in Excel examples and formulas. A bonus for sales managers that motivates them to work for results

19.01.2024

The article presents material, the reading of which will give the system developer an understanding of the advisability of using certain employee incentive tools in relation to sales managers. I also recommend that you read other materials on this topic. First, study well the experience of other, preferably successful, companies. I hope that with the help of our article, “insight” will come to you and it will become clear how to develop a system of motivation for sales department employees.

It should be noted that everything written in the article concerns those employees whose tasks and job responsibilities include direct sales functions. That is, they are the “face of the company” for consumers of its products. For logistics or shipping employees, or economists or marketers, the motivation system should be developed taking into account the specifics of their work.

Problems that can be solved with the right motivation

When you measure the achievement of these goals and objectives, the effectiveness of the motivation system will become clear. If the indicators go “plus” and sales results improve, the principle “victory has many fathers” may work. There may be employees who will say that sales have improved not because of the new motivation system, but because of their special efforts or “know-how.” It will be difficult to determine the truth. But you can only be sure that if sales deteriorate, the motivation of the sellers and the bonus system will be to blame.

Let's try to come up with tasks for a motivation system for sales departments. Of course, they will be derived from what marketing strategy the company is currently using. Quite simply, there are several options:

market penetration, when it is necessary to advertise and promote your product in an existing market;
market development, when a company develops new markets, new consumer segments, new sales channels and offers existing products;
product development, which involves developing and improving its products to increase sales to existing consumers and in old markets;
diversification of products and markets for different consumer segments.

All of the above objectives are fairly easy to measure. They are well suited for developing a motivation system for sales departments or individual employees.

Employee income structure

To competently develop a system for motivating sellers, it is first necessary to determine the structure of their income (compensation package). According to the requirements of labor legislation, it is impossible to completely refuse the permanent part of the salary. Therefore, the key issue will be to determine the correct ratio of the constant and variable parts.

For a business owner, the optimal option is when the employee is paid the minimum possible wage in the form of a salary. And the rest of the income in the form of a bonus depends on the quantity and quality of sales.

At the same time, such payment schemes do not look attractive to employees. After all, sales results largely depend on teamwork, and not just the salesperson’s talent. And if poorly organized, the sales system “steals” the employee’s income. Even if the “sales genius” is able to advertise product samples well, negotiate prices and close the deal, quality or logistics problems can have an extremely negative effect on the entire business.

The other extreme is to pay fixed salaries to salespeople regardless of sales results. It would seem that employees should be happy, but this is not the case. It is they who will compare their level of income with the effort expended. And if, with little effort, they receive the same salary as during the “emergency” work mode, it is easy to guess that the number of sales will tend to the minimum acceptable level.

The motivation system for network companies looks quite reasonable. It is structured in such a way that sales managers with the best results have a better percentage of the deal. Also, sales leaders are provided with a percentage of the transactions of their wards in order to stimulate the transfer of experience from more experienced sellers to newcomers. A sample of such a system can be found from company employees (usually in the form of a booklet) and used as an example for developing your own system.

The recommendation is that the ratio of the constant and variable parts is approximately the same. Then a balance will be maintained between the interests of the employer and the employee. At the same time, the issue of having a system for measuring indicators and evaluating personnel based on the results of these measurements becomes important. It is unproductive and wasteful for a business to have sales staff with below-average results.

How often to incentivize sellers

It is important to determine the frequency of the motivation system. There are not many options:

calendar payments (monthly, quarterly, etc.)
payments upon sales

Payments based on sales are more difficult to implement, but also more effective in terms of motivation. Closed the deal - received the money. A good positive connection is formed between the result and the reward.

Calendar payments are more conservative, but also more convenient. For example, it is difficult to pay a bonus based on sales if there were 30 such sales per month or per hour.

Individual approach – myth or necessity

Now a few words about the subjects of motivation, about people. Sales managers can be divided into three categories. The first of them is “workhorses”. The second category is “stars”. And the third category of sellers are random people, “ballast”.

Different people, different internal motives. which brought them to work for your company. If you “drive” everyone into one motivation system, only those for whom the motivation system is “in spirit” will survive. The rest will work unproductively and earn little. It’s good if they get tired of it and such people quit. But more often it happens differently. Employees go into standby mode and try to simply “sit out” this situation. They do the minimum work, pretend to be busy, and so on.

Therefore, to build a motivation system, you should think very carefully about the format of interaction with groups of sales employees. That is, you can consider the option that newcomers to sales or consistently “average” employees work on the company’s staff under an employment contract. But the “stars” may be offered partnership or the creation of a new department (branch) under his leadership. Introducing the position of sales director is also a good option for this case.

Most companies are reluctant to consider such options, trying to protect their business. They are afraid of losing important clients and leaking confidential information. Sometimes they are not ready to “inflate” the staff of the sales service. In any case, it is up to the business owners or top management to decide. Practice shows that the traditional sales system is quite effective and allows you to stay in business. But the transition to a qualitatively different level of sales does not occur with such a system. The motivation of sales managers in this case comes to the fore.

Bonus scheme options

The motivation of the sales department can be built in the following ways:

Percentage of revenue
Bonuses for achieving indicators
A combination of the first two options

The first option, a percentage of revenue, may be acceptable when implementing strategies for developing markets for an existing product or developing a product for existing markets. It is not suitable in conditions when you need to “enter” the market, since at first sales will be small, and you need to put in no less effort than with large sales. Such a system is quite difficult to apply where sales occur quite rarely (at least less than once a month).

It is better to use bonuses for meeting indicators where there is a well-regulated sales system. All salespeople are familiar with the “sales funnel.” So, the motivation system can be tied to the employee’s performance of all necessary actions and steps in communicating with clients (calls, meetings, presentations, etc.). At the same time, we must understand that meeting these indicators is guaranteed to lead to sales.

An option for bonuses for achieving indicators is a bonus for fulfilling a sales plan. By calculation or statistical method, a sales plan is established for each seller, depending on the percentage of completion of which a bonus is awarded.

Examples of indicators

Most often, a mixed motivation system is used. Part of the variable income is tied to the size of sales (through a percentage), and part is tied to the achievement of other indicators. The percentage of sales is quite simple to determine: you need to decide what part of the proceeds from sales the company is willing to give to the sales manager in the form of a salary.

For example, if products worth 1,500,000 rubles were sold in a month, then with a set percentage of sales of 1%, the seller is paid 15,000 rubles in the form of a bonus in the salary.

The table below lists indicators that can be used to reward not only department employees, but also sales department managers.

In general, all these indicators can be built into the sales bonus calculation system; the main thing is to correctly distribute the weight of each of them in the total bonus amount.

A small note: we deliberately do not indicate “percentage of profit” as an indicator. This indicator, in our opinion, is not acceptable for hired employees for a number of reasons.

It's not just money that motivates

The motivation of sales managers depends not only on the size of cash payments, we must not forget about this. In the article we talked about one side of the motivation system, but we should not miss the aspects non-material motivation of employees. After all, if a company is aimed at long-term and effective work, it needs a team of like-minded people, and not a group of subordinate employees in the sales department.

nomination for the best employee or challenge cup “For Best Sales”
corporate events following the results of major transactions (or exceeding the plan)
awarding a valuable prize for the best result, etc.

When choosing methods of non-material incentives for sellers, it would be useful for the head of the sales department to show imagination. It would be very good if the employees themselves were involved in the development of such non-material incentives. They are the ones who can offer the best ideas.

The presented material attempts to give general recommendations on how the motivation of sales managers is built. Of course, there are no universal recipes. You always need to take into account the difference in product range, sales system and many other factors that characterize the work of employees. But the general principles remain unchanged. The dependence of the amount of remuneration on the sales result is the main one.

"HR service and personnel management of the enterprise", 2008, N 3

Incentive scheme for sales managers: we develop and implement

Sales manager is one of the most in-demand professions today. In the total mass of all vacancies, such a position occupies 40 - 50% of the total number. At the same time, a resume of a valuable specialist looking for a job is quite rare. Therefore, the HR manager’s task becomes not only to find, but also to retain an employee in the company.

This article discusses motivation schemes for sales managers, the expectations of the managers themselves and their employers, and methods for developing motivational schemes. For sales managers, the issue of decent motivation is a key factor when choosing a job and striving to increase sales targets.

Employer Expectations

Now any employer is trying to find a compromise between the level of professionalism of a sales manager and the level of payment he requests. Self-respecting companies do not want to hire a sales manager immediately after graduation. Hiring an expensive specialist without confidence and clear guarantees of his effectiveness is the same. Here the employer's expectations are explained very simply: maximum efficiency with minimum costs is desired. In any case, effective sales are expected from managers already in the first months of work, because in the absence of sales, the company only faces losses.

Often, employers make clearly excessive demands on managers, initially setting a negative tone for interaction. This is unacceptable, especially for large companies with an already established business reputation. The main task of the employer in this case is to create such starting conditions and a motivation system so that the sales manager finds it profitable and interesting to work, so that he strives to show decent results in the first months of work.

The employer's expectations from the employee can be formulated as the following definition: a sales manager must be goal-oriented, result-oriented, effective, trainable and eager to earn money. And - most importantly - at a minimum, the sales manager must be at the break-even point, that is, pay for himself. Then the employing company can afford to hope for the future.

Example 1. If a sales manager receives a salary of $700, he must bring in at least $3-4 thousand in profit per month. This is due to basic calculations: for the full-fledged work of a sales manager, it is necessary to organize and provide his workplace, purchase office supplies, pay for travel, training, sick leave and incur other additional costs. Another significant expense item is the payment of sales managers who are on a probationary period, when the effectiveness of their work is close to zero.

I would like to note that the employer is interested in the prospects of a sales manager. After all, in essence, a company is a living organism and, no matter how cynical it may sound, it needs “fresh blood”. Every sales manager who shows good results can become a manager in the future. Therefore, the employer is interested in sales managers from the point of view of the personnel reserve.

How to motivate a beginner: a profitable compromise

Let's imagine a situation: a new sales manager comes to the company. He does not understand the intricacies of selling products that are new to him, and the process of adaptation to the workplace and to the team is also not a matter of one day. The company cannot afford to hire a professional sales manager, since he will have to be lured away, and this is expensive, so there is only one way out - to train. But at the same time, a newbie manager is the same person, with his own needs and requirements. He pays rent, eats, drinks, supports a family if he has one. And he simply will not work for a meager wage, without receiving the money that will allow him to maintain, at least minimally, his usual standard of living.

In this situation, some companies pay a very high salary during the probationary period, then sharply reduce it. As a result, the company gets "freeloaders". Managers come for a trial period and then leave. By the way, recently this has become a widespread epidemic, and companies are receiving direct losses.

The second, more common option is for companies to offer a minimum salary for a probationary period, without paying interest on sales, because they are not sure that the manager will complete the probationary period and remain employed. This is also not a solution, because in such companies people remain working who are focused on the future, but do not feel the slightest loyalty to the company.

In our opinion, a regressive salary rate could be a compromise option for a sales manager (see example 2).

Example 2. The maximum established probationary period for ordinary employees, according to the provisions of the Labor Code, is three months. Let's say a manager receives a salary of $300, and bonus payments for the average manager are $700. A new manager, if, in the opinion of management, he is a promising employee, which is determined at the interview stage, is paid a salary of $600 in the first month, in the second month - 500, in the third - 400. With a successful transition to a permanent job, the salary is reduced to a constant rate of $300. If active sales begin in the first months of work, the sales manager's bonuses are calculated based on the following principle: if the amount of the basic salary and percentage of sales above the established individual salary, bonuses are paid. If the sum of interest and base salary is less than the individual salary (in this example, $600), then the base salary established during the interview is paid.

Do not forget that for new managers, in addition to the actual monetary motivation, non-material motivation also plays a big role: the psychological climate in the team, the attitude of management, various bonuses in the form of free lunches, subscriptions to the fitness center, etc. Even a banal trip to bowling with a friendly team for a new manager is as significant as the first big salary in a new company.

Requirements of experienced managers: bonus scheme

There is a whole class of experienced sales managers who could have taken a leadership position long ago by rising through the ranks. However, many of these specialists choose to remain in their positions for a number of reasons. And first of all, this is explained by the confidence that, thanks to their professionalism, they can earn the maximum with a fairly low level of responsibility for decisions made in comparison with the heads of sales departments. However, the level of demands they place on employers is different from that of ordinary managers or new recruits. They know their worth, so they come to employers with a well-formed package of requirements. And here employers have to weigh what is better: overpay for a professional sales manager with the hope of his client base and existing relationships with clients, or consider the manager’s demands too high. As a rule, professional managers, in addition to a simple and understandable motivation scheme, require from the employer workplace equipment that suits them (for example, a laptop for use), company vehicles, certain benefits in relation to the work schedule, etc.

In any case, professional managers, as a main component of motivation, will ask for a salary slightly higher than the standard one and, naturally, will fight for higher percentages of sales or profits. Often the ratio of salary to bonus payments is approximately 30 to 70. In general, the incentive scheme for experienced managers does not provide for a large salary, because this automatically sets a certain ceiling on bonus payments. And since the main goal of an experienced manager is to earn as much as possible from their professionalism, then in this case they do not need a salary ceiling. On the contrary, sales managers who have worked for several years in this position and are not striving for career growth value precisely the absence of a salary cap and the fairly obvious fact - how much they sold, so much they received.

Established bonus schemes

Currently, in Russia, as well as throughout the world, there are two main bonus schemes and many compromise solutions based on them. Thus, you can link the size of the bonus either to sales volume (in kind or in monetary terms) or to profit (gross or net). It is difficult to clearly define the priority of one scheme or another. The choice in favor of one of them will depend on a number of factors.

For example, you cannot compare the motivation scheme of a sales representative with the motivation scheme of a manager selling boiler equipment. The sales principles are different, and therefore the motivation system is different.

Companies must also take into account the seasonality of sales of their products. For example, companies specializing in the sales of rolled metal or building materials have clearly defined seasonal characteristics, and therefore their financial situation is not very enviable: for six months they trade in plus, and the rest of the time - in minus. Based on this, using a motivation scheme based only on profit or only on volume is also unprofitable. And first of all, it is unprofitable for the sales managers themselves. After all, people want stability, and not a difference in their bonuses several times during the season and during the off-season period. At the same time, incentive schemes provide not only bonus payments, but also a level of responsibility for sales on deferred payment terms.

In addition, when choosing a bonus scheme, you should consider:

Terms of payment for products (prepayment or deferred payment);

The number of product items (if the volume and assortment are significant, it is very difficult to calculate the markup. In this case, the size of the premium is tied to the gross sales volume);

The complexity of the sale (that is, the sale itself and associated service support).

In modern business, there are basic requirements for motivation systems: a good motivation system for managers should be transparent, balanced and strictly tied to labor results for the reporting period. The reporting period is usually taken to be a month. At the same time, the motivation system should be tied to two indicators that are most important for the company: net profit and plan implementation in monetary terms. As practice shows, all these figures are quite easy to plan. As an example, we can consider the motivation scheme of a typical company engaged in wholesale sales of building materials and rolled metal (see example 3).

Example 3. Excerpt from the Regulations on the bonus system for sales managers.

"...The warehouse sales manager's bonus is calculated using the formula:

Premium = Indexed markup for the company's product excluding VAT x 0.060 x payment plan fulfillment ratio.

The calculation takes into account the markup excluding VAT on the manager’s paid and shipped transactions for the month based on the transaction fund (a local document containing a list of all the manager’s transactions for the reporting period, from which by calculation it is possible to calculate the amount of net profit excluding VAT earned by each specific manager. - Note ed.). The company's management reserves the right to apply markup indexation in the event of a sharp rise in prices (10% or more for one or more product groups at the same time). At the same time, management guarantees that the manager’s total bonus level will not decrease (in comparison with previous months) provided that he maintains volumes in physical terms (in tons). The indexing methodology remains the same. The markup for calculating the premium is end-to-end and is calculated from the entry of the product into the company until it is released as a sale to the client.

Adjustment of bonus amount:

a) with 100% prepayment of goods: Premium = Markup excluding VAT x 0.095;

b) if the products have been shipped and paid for, and there have been no overdue customer payments according to the terms of the contract: Premium = Markup excluding VAT x 0.080;

c) if payment for delivered products goes beyond the deferments provided under the terms of the contract, but not more than 30 calendar days: Premium = Markup excluding VAT x 0.050.

If the buyer fails to pay more than 30 calendar days from the deadline established in the contract, bonuses for this transaction are not paid to the manager.

If the overdue transaction is partially paid, then bonuses are not accrued on the actual remaining amount of the debt.

In all three adjustment options, the calculation takes into account the markup excluding VAT on the manager’s paid and shipped transactions for the month according to the transaction fund. When compiling a transaction fund, the initial entry price of the goods sold to the company is taken as the incoming price.

Adjustment of the bonus amount to fulfill the payment plan.

When the manager fulfills the approved plan for the month:

a) less than 50% inclusive - no premium is paid;

b) from 50% to 75% inclusive - the premium is reduced by 15%;

c) from 75% to 85% inclusive - the premium is reduced by 10%;

d) from 85% to 99.99% inclusive - the premium is reduced by 5%;

e) from 100% inclusive to 110% inclusive - the premium is paid according to the approved formulas;

f) from 110% to 120% inclusive - the premium increases by 5%;

g) from 120% to 150% inclusive - the premium increases by 10%;

h) over 150% - the premium increases by 15%...".

The motivation scheme shown in the example actually exists and works. But in those moments when the company was objectively working for survival without making a profit, the binding amount of bonuses was replaced by a fixed figure per unit of products sold, be it a ton, a piece or a cubic meter. We can agree that within this system the employer has fairly large leverage over bonus payments. However, the sales manager also has a very clear understanding of the calculation of his bonus part and, with a calculator in his hands, can easily find out the amount due to him.

Hence the advice to candidates for the position of sales managers: in order to avoid unnecessary disappointments, you should get acquainted with the motivation system adopted by the company directly during the interview and do not be afraid to ask questions.

Development of motivation schemes in the company

As a rule, company executives and HR managers are responsible for developing incentive schemes in a company. In our opinion, this is the wrong approach. The motivation scheme is a complex document, so ordinary sales managers and heads of departments or sales departments should take direct part in its development.

It seems to us that the best option would be to develop a mixed motivation so that it is tied to both the markup and the sales volume. And most importantly, the interest must be progressive. The main idea is this: the more additional profit the sales manager brings in compared to the established one, the greater the percentage of this profit as a bonus he should receive. This will be fair and - most importantly - beneficial for the company.

The question of how much sales managers need additional motivation schemes, in addition to monetary ones, still remains open and controversial. In large companies this has long been a rule of politeness. Many medium and small companies also try to include more than just monetary payments in their overall motivation system. This is right. Despite extreme forms of practicality and sometimes monetary cynicism found among sales managers, additional components of the motivational scheme for managers are no less important. After all, in fact, it is very difficult to concentrate on making money if the manager is surrounded by complete negativity. Thus, the closest attention should be paid to this issue in the development of motivational schemes.

Is there a universal motivation scheme?

This question plagues all HR managers, all recruiting agencies, all business owners. The answer is obvious - you can create a universal scheme, but without taking into account the specifics of each specific business, it will be useless. Here you need to understand why and who needs a motivation scheme. Ultimately, an effective motivation system is aimed at increasing the company’s profits, and sales managers, company executives, and owners must understand this.

The motivation system should not be aimed at lightning-fast sales growth. The emphasis here should be on building a more competent sales system and, as a result, increasing marginal profits and reducing costs.

The universal motivation scheme is a multifactorial system. Therefore, it consists of a number of key points that determine its overall effectiveness, among which are:

Organization of the employee’s workplace;

Forming a team of employees striving to move away from stereotypes and show imagination;

A simple and understandable employee bonus system;

A clear scheme for the division of powers and responsibilities.

Regarding the organization of an employee’s workplace, we can say the following. Corporate clients, as a rule, are large enterprises with a developed staff, working capital, and financial resources. Therefore, it is necessary to make maximum use of all possible channels of communication with these most important clients for the company. The sales manager is the link between the company and the client, and he must work effectively. And for effective work, the employee’s workplace must be equipped with ergonomic furniture, a computer, a fax, and a telephone. Moreover, it is necessary to actively use means of communication using the Internet - e-mail, ICQ, website. For example, it makes sense to develop an application form and provide it by fax or email in negotiations with clients. In addition, it is necessary to develop and actively support your own website with the inclusion of ICQ consultant services on the site, specially allocated among managers. On the site you can organize an Internet portal for corporate clients - a kind of personal page on which they can place orders, learn about the stage of their execution, as well as about promotions and bonuses carried out personally for them. This is also included in the creation of an effective motivation system for managers, since work convenience is an important factor.

Forming a team of employees striving to move away from stereotypes and show imagination is the second and very important point that directly affects the motivation of sales managers. To get the desired result, the company as a whole and its management in particular need to form a company not of subordinate employees, but of a team of like-minded people.

To do this, you can take the following steps:

Introduce a compensation scheme for exceeding the plan, tied both to sales volume and to the level of markup on products. Moreover, the higher the overfulfillment, the higher the correction factor should be. People strive to make money, and if they have an incentive to do so, they will do everything they need to do themselves;

Enter nominations for the best department, the best employee. In this case, adjustments must be made to suit certain tasks. Often a company's moving flag and a bottle of champagne work no worse than a good cash bonus;

It is imperative to provide nominations based on the results of the reporting period (for example, month, quarter, year). These may be nominations such as “The largest number of new corporate clients”, “Breakthrough of the season”, “Best service based on customer feedback”, etc.;

Create ownership of the results of the company's work and specific people, in this case managers. If all managers know the plan (for example, by markup or by volume), then announce that if the plan is exceeded by 10%, an in-house banquet will be held with a billiards competition, and by 20% - a bowling competition. It could be anything - a corporate company day, held on a grand scale, or a kayak swim.

This once again confirms one simple idea - people will follow the rules if you explain to them in detail how these rules will allow you to earn more. And it is not so important what it will be tied to - the volume of turnover or the amount of marginal profit.

Motivating sales managers is not an easy task. And it is certainly not based only on the monetary equivalent. This issue must be approached comprehensively, because, despite experience and qualifications, a sales manager remains, first and foremost, a human being. Motivation should be built on the sales manager’s basic aspirations for self-realization and a decent life for himself and his loved ones. That is why it is necessary to take a very responsible approach to building a successful motivation system and to develop it, use not only bare theory, but also involve the profit-generating link of the company - sales managers and their immediate supervisors. Only then can you be sure that the motivation system will work effectively and for results.

I.V.Chernov

Director

in Marketing and Economics

LLC "Company CREDO"

Signed for seal

What formula should be used when calculating the salary of a sales manager so that his motivation constantly grows, and at the same time there is no dissatisfaction among employees? Is it worth using coefficients for length of service in a company? Business.ru experts share their experience.

Expert opinions on calculating salaries for sales managers

There is no ideal salary formula for sales managers, due to the specifics of the position, where the main goal is to act depending on the situation. That is, the main motivation of the manager is to sell more, complete the task based on the interests of the employer, and get his percentage.

The only thing worth considering is the flexibility of KPIs. For example, if a certain product is lying in a warehouse and needs to be sold, a motivational scheme should be made so that the seller wants (it is profitable for himself) to sell this product.

For example: when the sales plan is fulfilled - such and such a percentage, when the plan is fulfilled according to certain models - an increasing coefficient.

The second point is the sales plan. We take into account here that the seller must not only fulfill his personal sales plan, but must also be interested in the fulfillment of the sales plan by his department; there must be an increasing coefficient for the entire department to fulfill the sales plan. That is, the seller fulfills his personal sales plan - one percent, the department fulfills it completely - an increasing coefficient.

If the salesperson fulfilled his sales plan, but the department as a whole did not, then the salary coefficient of this employee should be lowered relative to the sales of the entire department. Also, in addition to selling the main product, the seller should have a motivational reward system for cross-selling.

The Business.Ru CRM system will allow you to fully control the sales department, calculate salaries for managers, manage relationships with clients, conduct productive work with leads, and also increase the efficiency of employees.

There is also a good profit from selling cross-products or services, and the seller should not neglect this fact. You can also add an increase in rewards for customer satisfaction. In general, it all depends on the imagination of the business manager and the capabilities of the company.

For example, a certain percentage for the implementation of your own plan, plus an increasing factor (for example, 1.5) for the department’s complete implementation of the plan, plus a percentage of the profit from the sale of additional services and a general increasing factor of 0.5 to the entire amount for a high rating for customer satisfaction.

It is only important for the manager to understand that the motivation system must be transparent (understandable to the seller) and simple to calculate, so that the seller understands how his salary is calculated. But at the same time, you shouldn’t simplify it too much.

For example, set a plan for selling such and such a quantity of goods, and that’s it. This is rather a demotivator, since the seller will aim to fulfill this particular plan, fulfill it, and then sit quietly and wait for the end of the month.

Is it necessary or useful for business? The motivation system should motivate, stimulate the seller, force him to leave his comfort zone, but at the same time he must be sure that he will receive all the promised bonuses at the end of the month.

Ekaterina Ovcharenko, co-founder, Spikes Russia:

In our wholesale company Spikes Russia, the manager’s salary consists of 5 indicators:

Fixed part (25% of the total amount to be issued).
Bonus for the amount of personal sales (25%).
Bonus for fulfilling the company's general plan (15%).
Premium for the plan based on the number of primary clients (31%).
Award “for the absence of complaints from clients” (9%).

For example, the fixed part is 8,000 rubles. Prize “for the absence of jambs” - 2,000 rubles. These are immutable quantities. In fact, this is the minimum that a manager can count on for consistently positive work.

The company's turnover plan is set monthly. For example, the plan is 2 million rubles. If at the end of the month the plan is 100% complete, the manager will receive + 5,000 rubles. If the plan is 80% fulfilled, that is, the revenue was 1.6 million rubles, then the manager will receive 80% of 5,000 rubles, that is, 4,000 rubles.

This system allows you to motivate the manager to sell more (initial orders) and re-sell to existing customers (bonus for the company’s turnover plan).

Timur Lavronov, PR Director, Vertex:

There are several traps that a manager can fall into. Trap number one - you don’t have the four management functions that you should have: motivate subordinates, organize work correctly, set a plan, control. Very often one of the management functions is not given to you.

For example, you cannot change employee motivation at your discretion. The manager says: “I want to pay a bonus for fulfilling the plan, give me a doubling of the plan.” Dear owner! It is impossible to double the plan while maintaining the “bonus for fulfilling the plan” motivation. If you want strong sales growth, then the motivation should be “percentage”, or more precisely, “progressive percentage”.

This means that the more the manager sells, the greater the commission he will receive. If, for example, a manager sold 1 million rubles worth of goods per month, then he receives 5% of the proceeds. If you sold for 1.2 million rubles, then from a part of this amount of 1 million rubles. he will also receive 5%, and from 200 thousand rubles. he already receives 7% of the revenue.

And if the manager sold for 1.5 million rubles, then the commission from this amount is broken down as follows: from 1 million rubles. - 5%, from 200 thousand rubles. - 7%, and from 300 thousand rubles. - 10%. Here you can use a smoother formula, not necessarily step-by-step. You can also use a linear relationship between the minimum and maximum percentage that the manager receives.

The more you sell, the greater the commission on the total amount. Such financial motivation helps the manager sell as much as possible. This financial motivation should be used if your company is young and you need big sales, or if you are introducing a new product to the market.

There is no “percentage of net profit” - this is all a lie that the manager will not believe. He doesn’t see your net profit, because net profit is calculated minus your salary, you won’t tell anyone your salary, as a director, you won’t tell anyone all your office expenses, and so on. Therefore, it is calculated from revenue or gross profit.

If the motivation is “a bonus for fulfilling the plan,” then this is a stabilizing motivation that does not lead to a sharp increase in sales growth, but leads to stabilization of sales. If you, as a leader, do not have the ability to change motivation, then you are limited, your hands are tied.

There is another way of financial motivation - based on the fulfillment of the plan. If the manager fulfills the plan, he receives a bonus. If he does not comply, he receives a smaller bonus or does not receive it at all. If the manager exceeds the plan, he is entitled to a regular or increased bonus.

In what cases is this used? When the company has already passed the formation period. Let's assume you are using a progressive commission scheme. At the initial stage, a sales manager can sell 1 million rubles per month. and receive 5%. This is 50 thousand rubles. plus a salary of, say, 20 thousand rubles. Total - income 70 thousand rubles. per month.

Two or three years pass, the manager acquires clients, and sales are already repeatable. The work that a manager does requires less labor. And the amount for which he sells has increased, let’s say, to 5 million rubles. per month. As a result, 5% of 5 million rubles. - 250 thousand rubles. Plus salary. The manager's income is 270 thousand rubles. This is too much money. You overpay the manager: he makes repeat sales that require less effort and time.

In this case, it is wise to use the planned bonus system. At the same time, set a smaller plan for a novice manager, and a larger one for an experienced manager. This system allows you to reduce dependence on the manager and not overpay him. But it causes dissatisfaction on the part of sales managers.

Firstly, because the manager does not trust the fairness of how you set the plan. The fact is that achieving the plan will determine whether he receives his bonus or not. If the plan is too high, there is a high probability that the manager will not receive the bonus. Secondly, managers do not agree with the fact that they are given different plans.

For example, one has been working for five years and his plan is 5 million rubles. Another employee works for a year and for him the plan is 1.5 million rubles. At the same time, they receive the same salary and bonus. An experienced employee's dissatisfaction can be overcome with financial incentives, such as a seniority bonus or a promotion.

It is not necessary to appoint a manager as a leader. You can make him a senior manager, lead manager, key account manager, or account manager.

If you do not have the opportunity to set a plan and standard, yes, there is a certain plan that will suit your CEO, but can you at your own discretion determine the plan between employees? Distribute this plan among different products? Regions? Departments? No, you can’t - okay, your legs are also shackled.

There is one more thing. Trust gives rise to the desire to justify this trust, and not to deceive it, as many people think. At my last training, many questions arose about the video that is on our channel about the fact that some of our employees write bonuses for themselves.

After all, in theory they should inflate their bonuses, raise them in order to rip off the office. No. Trust creates a sense of responsibility in the employee. We've never had anything screwed up, just like that. Didn't you expect such a reaction? Why do you think so badly about people?

The CRM system for a store from Business.Ru allows you to control the working hours of sellers and record the opening and closing of the store. A special event log will allow you to quickly identify an incompetent employee.

Sergey Oseledko, managing partner of Notamedia agency:

Notamedia does not have a payroll formula for sales managers. The fixed amount payable at the end of the month is quite high, but it can be made higher. We use a system we call “employee karma.” This method of motivation bears fruit. “Employee Karma” is a kind of virtual account, flexible and understandable. If an employee’s KPI is higher, then his karma increases.

This method is applicable to all employees, including those involved in sales. The introduction of a special system by which it would be possible to determine the amount of a sales manager's salary seems inappropriate to us. Regardless of the direction in which a person works, motivation should not be increased only with the help of the financial component.

Or, partly with the help of the financial component, but within one direction, for example, sales. The motivation of all employees must increase. Ultimately, each of them contributes to one common big cause.

Svetlana Makarova, director, Makarova S.A.:

A sales manager is an achiever, so when developing a universal salary calculation formula, it is important to pay attention to the motivational part. A manager cannot receive only a salary - this is a mandatory condition that does not affect the desire to become a sales leader, set sales records, etc.

Therefore, when developing a formula for calculating wages, we will lay down such an understanding as bonuses/premiums from sales. Stinginess in this matter can result in financial losses for the company. The rule works here - the faster the manager receives a bonus from the sale, the more profit he will bring to the company.

So, we lay down the fixed salary portion, which the manager will receive under any conditions. The second component of income is bonuses, which should not have a “ceiling”. As much as I earned, I received as much. Simply put, we allocate a percentage that we are willing to pay from the sale of each company product.

The manager should receive this percentage by default, so he will understand that he can increase his income. However, it must be taken into account that a sales manager is a rather fickle workforce, therefore a salary + sales bonus is not a panacea for retaining and developing an employee.

Therefore, let's add additional motivation to this formula, which will become a catalyst for increasing sales volumes for the entire department. This way the company will get maximum results, each employee will strive to bring even more sales to the company.

Additional motivation is built from several levels; you can take 3 steps as a basis. In order not to reinvent the wheel, we will increase the sales bonus by 5, 10 and 25%, therefore, if sales volume is exceeded by 25, 50 and 70%:

Planned sales volume = salary + sales bonus.
Overfulfillment by 25% = salary + sales bonus x 5%.
Overfulfillment by 50% = salary + sales bonus x 10%.
Overfulfillment by 70% or more = salary + sales bonus x 25%.

And as a final touch, we set several targets - sales volumes for 3-6-12 months, upon reaching which the manager increases his salary.

Thus, the company gets an employee who will give 200% and will understand how much he can earn and what he needs for this.

You can also easily separate the wheat from the chaff, since an employee who is not focused on results, compared to colleagues who earn several times more, will either begin to take active action, or the company will be able to systematically replace personnel without harming the company’s productivity.

Please do not forget to open a vacancy in time and replace an employee who does not bring the desired result, such a person on staff will demotivate his colleagues!

Read articles about organizing the work of a sales manager:

Expert opinions on calculating salaries for sales managers

For example: when the sales plan is fulfilled - such and such a percentage, when the plan is fulfilled according to certain models - an increasing coefficient.

Ekaterina Ovcharenko, co-founder, Spikes Russia:

In our wholesale company Spikes Russia, the manager’s salary consists of 5 indicators:

Fixed part (25% of the total amount to be issued).
Bonus for the amount of personal sales (25%).
Bonus for fulfilling the company's general plan (15%).
Premium for the plan based on the number of primary clients (31%).
Award “for the absence of complaints from clients” (9%).

This system allows you to motivate the manager to sell more (initial orders) and re-sell to existing customers (bonus for the company’s turnover plan).

Timur Lavronov, PR Director, Vertex:

It is not necessary to appoint a manager as a leader. You can make him a senior manager, lead manager, key account manager, or account manager.

Sergey Oseledko, managing partner of Notamedia agency:

Svetlana Makarova, director, Makarova S.A.:

Planned sales volume = salary + sales bonus.
Overfulfillment by 25% = salary + sales bonus x 5%.
Overfulfillment by 50% = salary + sales bonus x 10%.
Overfulfillment by 70% or more = salary + sales bonus x 25%.

And as a final touch, we set several targets - sales volumes for 3-6-12 months, upon reaching which the manager increases his salary.

Thus, the company gets an employee who will give 200% and will understand how much he can earn and what he needs for this.

Please do not forget to open a vacancy in time and replace an employee who does not bring the desired result, such a person on staff will demotivate his colleagues!

Read articles about organizing the work of a sales manager:

Each employer must provide its employees not only with the conditions for fulfilling job obligations, but also with the timely payment of remuneration.

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Salaries are calculated according to a specific system, which can serve as an additional way to motivate employees. But sometimes it becomes a stumbling block and a method to deceive conscientious personnel expecting the promised payment based on the results of their work.

One of such systems is the bonus system, which has the same number of advantages and disadvantages.

What it is

The bonus system is an effective system in which the main type of earnings depends on the productivity of staff. Characterized by the ability to increase remuneration through ability to work and independence from other personnel.

The bonus system is similar in its characteristics to the piecework and time-based systems. Employees are aware that only high-quality and fast work leads to the expected results, for which good remuneration is due. Otherwise - an official salary, the amount of which does not exceed the minimum wage.

System Features

The bonus system is used quite often now. It has many features:

allows managers to see the efficiency and hard work of employees, to identify unscrupulous individuals who do not want to work at full capacity;
allows you to fulfill monthly production and sales plans, increase the profitability and income of the company;
prevents conflict situations among staff that arise due to a lack of coordinated work;
eliminates taxation on large amounts (income tax is deducted only from the salary portion);
employers have the opportunity to reduce costs for sick leave, vacation pay, and maternity leave.

The bonus system is beneficial, first of all, to employers. They have the opportunity to enter a bonus deduction table and create a list of fines.

Personnel who agree to work with payment under this system will have to comply with a huge number of rules and perform monthly tasks.

Wages under the bonus system are calculated as follows: the amount of work performed is multiplied by the unit cost of the work. Simply put, payment is made per unit of goods.

With a bonus system, other options for calculating wages are possible. For example, a bonus is issued only when the plan is fulfilled, or the bonus part is issued for several indicators.

In any case, the method of calculating wages and the cost of services of an employee of each profession and category must be specified in the employment contract.

Where is it used?

The bonus system is used primarily in trading and insurance. The legislation of the Russian Federation does not approve of payment in this way, since workers have no guarantees.

They receive an official salary, which is displayed in the documents, and the bonus part may not be given at all.

Therefore, most companies that practice a bonus system always need workers and easily accept everyone, regardless of age, education, or employment status.

Initially, the bonus system in the service sector was earnings through the “imposition” method.

Workers had to sell goods by any means, offer them to various groups of people, talk about the non-existent advantages of products.

By selling one item, you could receive a certain percentage of the proceeds. This is how the bonus system was born, which is actively used by modern businessmen.

The bonus system can also be used in production in a small company. In this case, workers are given a bonus for several achievements: fulfillment of the plan (or for the amount of work done), length of service in the company, absence of violations, etc.

If the employer deprives the staff of one part, then the employees still receive a bonus, in addition to the official salary.

Calculation example

Let's look at an example of the simplest way to calculate wages. In company "N" the rate per unit of goods sold is 2 rubles.

The official salary is 8,000 rubles. In a month, Ivanov sells 5,000 units of goods and receives a bonus of 10,000 rubles for this. In total, Ivanov earns 18,000 rubles per month.

Another example. Ivanov needs to sell 1000 units of goods per month, then for each unit he will be paid 10 rubles. If he does not fulfill the plan, then the cost per unit will be 6 rubles.

Using a simple mathematical equation, we find out that Ivanov’s bonus for fulfilling the plan will be 10,000 or more, and if the plan is not fulfilled, it will be less than 6,000 rubles.

Another option is possible. A bonus of, for example, 15,000 rubles is paid only when the plan is fulfilled and 1,000 or more units of goods are sold. If the plan is not fulfilled, then the bonus is not paid.

You can give endless examples of calculations. If the employer is conscientious, then he establishes the following system: he pays for each unit of goods or services sold.

If the plan is fulfilled or the company's efficiency improves, an additional bonus is paid. All employed persons will agree to work under such conditions if the cost of their services is higher than the minimum values.

Bonus system of remuneration for sales managers

Sales managers are the most common profession in the bonus payment industry. The salary of such employees depends directly on the work performed, or more precisely, on the clients attracted and products sold.

The manager’s personal achievements allow him to receive a good remuneration, significantly exceeding the salary portion.

The salary of a sales manager should be formed taking into account several rules:

The salary portion should be no more than 50% of the bonus	This provides an incentive to improve work efficiency. Thus, it is not profitable for a manager to work for a “bare” salary, but receiving a salary every month that is 2-3 times higher than the official salary is very attractive
The salary must be no lower than the market average	It often happens that a company hires new people, trains them, trains them, and they leave for another organization. And the reason is quite understandable - a competitor offers employees a more favorable salary. And since at first managers work almost exclusively for the official part of the salary, they will find employment where they promise a good salary
Managers should know how much they can get and how much they will earn at first	You shouldn’t promise new employees “mountains of gold” and say that from the first months of work they will earn the same amount as managers with decent experience earn. Employees need to draw a diagram or provide a table that shows all the indicators of their possible earnings

The company's profit directly depends on the work of sales managers. Therefore, staff motivation must be effective.

If additional bonus components are included in the bonus system, then employees will only be motivated to work productively.

For example, promise managers a bonus for fulfilling the plan. And if it was not fulfilled this month, then employees will have an incentive to increase productivity and increase the company’s turnover.

Advantages and disadvantages

We talked a little about the advantages of the bonus system above. Indeed, this method of calculating wages to employees sometimes turns out to be very effective if the employer sets clear requirements and does not skimp on the salary portion.

So, the main advantages of the system for employees are:

the ability to regulate your income, increase the efficiency of work performed, and strive to improve performance for the reporting period;
allows you to get acquainted with the market, assess demand, and develop a client base;
the possibility of additional earnings through official employment in another organization;
a flexible work schedule (in most organizations) allows you to independently organize your daily routine;
complete independence from other company employees;
Opportunity for rapid career growth with good performance indicators.

It seemed like an ideal job. Especially considering that it can be combined with another way of earning money. But not everything is so good.

Let's consider the disadvantages:

As for the employer, the bonus system has only positive aspects. The company is not responsible for paying the bonus; bonuses can be issued periodically.