How to diversify the work of a sales representative if he is tired of working in his area? Do you know why a sales representative gets bored with his job? Because his life reminds him of "Groundhog Day" - the same thing every day. He knows what kind of people he'll be with

5. Gross wage rates and net wage rates In the labor market, an employer buys and receives, in exchange for wages, a certain action, which he values ​​according to its market price. For the price of a certain quantity

Chapter XX. Do unions provide wage increases? The belief that unions can significantly raise real wages in the long run and for the entire working class is one of the greatest delusions of our century. At the heart of this delusion

11. How to develop your own performance management system Development of a new or improvement existing system performance management can take even less time than you think. Many organizations admit they can now save

2.12. Deposit of wages According to the Procedure for conducting cash transactions in the Russian Federation (approved by the decision of the Board of Directors of the CBR on September 22, 1993 No. 40), three days are allotted for the payment of wages at the cash desk of an enterprise, and in the regions of the Far North and equated to them

10.2. Payroll To perform payroll operations in the "1C: Accounting 8.0" program, the document "Payroll to employees of organizations" is used. On February 28, 2006, we will calculate the salary for the chief accountant of LLC

Develop a new system Develop a specialized system. If at all possible, then, as a rule, such a development of events should be avoided. Main advantage: the system can be completely customized and configured for a given organization.

Any business requires the effort of selling a product or service to a potential buyer. This is a necessary and obligatory condition. The problem is how to pay for these efforts. Let's consider one of the possible answers to this question. I will immediately make a reservation that no solution can be considered universal and equally effective for any company. Moreover, the company should review the existing payroll model for its employees from time to time and change it if necessary. Such a need can be caused both by changes in the company and in a single market, and at the macroeconomic level.

The first approach to payment - a permanent salary - is common because of its simplicity. The main disadvantages of this model are its static nature and the lack of incentives for the development of employees.

The commission model has a greater impact on the motivation of sales staff. Based on my experience with the practice of various companies, I can say that the commission model, when the rate is symbolic or absent in principle, can be extremely effective in motivating sellers. However, this model is not suitable for every company and not for every category of employees. Disadvantages of the model:

• stimulates only those activities for which payment is made;
• stimulates individual achievements (sometimes to the detriment of overall results);
• stimulates the achievement of current tasks;
• payment is made according to the actual fact, without taking into account the dynamics of the market and the company.

The option proposed below - payment according to the level of achievement of planned indicators - is also not without drawbacks. The main one is the need for a clear system of planning and accounting in the company. On the other hand, there are a number of undeniable advantages:

• allows you to manage the situation: to anticipate and plan the results of work;
• takes into account the dynamics of the market, as well as the dynamics of the development of the company and the individual employee;
• takes into account several factors, including group performance;
• tied to the goals of the entire enterprise;

Several principles underlying the model proposed below:

• Salary is only one of the components of the company's personnel policy and cannot be taken out of the corporate context.
• Salary solves two interrelated tasks: it keeps the employee in the company and stimulates him to achieve the highest possible results of work. Based on this, the optimal model for the profession of a sales representative is a model of payroll from a constant part (which corresponds to the level of his professionalism and satisfies the necessary minimum of his needs), and a variable part, depending on the results of his work.
• The goals that are set for employees must be achievable, as the constant failure to fulfill the plan is demotivating. Approximately 80% of employees should be able to achieve planned targets in in full, 20% must be able to exceed the plan. Otherwise, the plan itself should be revised.
• The payroll model should be logical and understandable to employees.
• The development of a compensation package is preceded by a careful selection of employees, any model must take into account and include the factor of self-motivation.

Now the model itself. Salary is calculated according to the formula:

Z.p. = Rate + Premium

In turn, we calculate the premium as

Premium = Rate x Performance Rate

Z.p. = Stake + (Stake x Performance Rate)

The procedure for calculating the Performance Ratio (Kp):

1. indicators and criteria are determined by which the work of a sales representative is evaluated, as well as
2. the weight of each indicator (its value and the degree of influence on the overall assessment of the work);
3. for each criterion, a planned indicator is set;
4. for each criterion, the coefficient of achievement is displayed;
5. the sum of the "weighted" results for all criteria characterizes the effectiveness of the work.

Requirements and list of performance evaluation criteria:

1. Criteria should describe all key aspects of the sales representative's job.
2. The criteria values ​​must be under the control of the sales representative.
3. It is desirable that there be few such indicators, no more than five, and that they do not duplicate each other.

It is obvious that the results of the work of a sales representative largely depend on the work of other employees and departments of the company. It is difficult to compensate for a weak product or an unfavorable market situation even with highly professional work of the sales service. Nevertheless, it is possible and necessary to evaluate the contribution of a sales representative to the overall result. For a sales representative of a manufacturer/distributor of FMCG goods, the following indicators can be used as evaluation criteria:

• Number of active clients: It probably doesn't make much sense to estimate the number of meetings, since it's not the number that matters, but the end result.
• Sales volume: largely depends on the marketing and production policy of the company, the level of knowledge and loyalty of end users; on the other hand, a sales representative can manage a portfolio of customers and distribute their time more efficiently among their clients.
• Accounts receivable volume: Force majeure aside, the sales representative must know and consider the client's capabilities. The ideal indicator of receivables is zero whole, zero tenths of monetary units, but in reality you have to put up with customer debts and manage the amount of debt. To do this, you can link the debt to the turnover and determine the standard indicator of the return of funds as planned (the share of receivables in the actual turnover).
• Assortment: Although the situation varies from customer to customer, in general this indicator should also be taken into account, especially at the stage of introducing a new product to the market or when conducting targeted marketing activities. In this case, you can additionally enter an indicator for the distribution/sales volume of a specific product name or sales of a specific category of customers.
  Evaluation by distribution channels, if there is no clear goal (for example, to build 100% direct distribution "manufacturer - retail chain"), it makes no sense to carry out. It is more important to evaluate your market share. Since the calculation of market share can be difficult due to the lack of reliable data on competitors, it is possible to set a goal not in percentage, but in natural terms, estimating not a relative share, but an absolute volume.
  Competent distribution is a prerequisite for successful sales, therefore, when fulfilling a turnover plan, a sales representative or regional manager will be forced to look for optimal distribution channels. The head of the sales department can be evaluated by the volume of sales and receivables, as well as by the average performance of subordinate sales representatives.

1. A performance threshold needs to be set. For example, the bonus is paid only if the sales representative has achieved a performance indicator of at least 70%. This will keep the seller's attention on each of the estimated indicators.

An example of performance calculation:

1. The base rate can be determined based on the sales plan and projected profit (proactive approach), or based on market averages (reactive approach).

Base rate = budget / (1+ min K)

where min K is the threshold performance coefficient.

For example, with an average salary of sales representatives in the industry of 400 c.u. and the minimum allowable performance level of 0.7 (70%), the base rate will be 235 c.u. And the salary (in our example) is 414 USD.

The disadvantage of the set of criteria proposed above is the lack of consideration of such aspects of the work of a sales representative as discipline, teamwork, self-education, etc. Therefore, this model, like any other, requires evaluation and adaptation to the capabilities and needs of a particular company.

You can motivate a sales representative to work as a team by evaluating his effectiveness, taking into account the results of the work of the entire department or company. To do this, it is additionally necessary to determine the rate of employee responsibility for personal (for example, 80%) and group results (20%). In our example, if the sales department achieved a result of 90%, then the employee's performance will be 78.8% (= 76% * 80% + 90% * 20%).

And the most important thing is to remember that the model is needed not for the sake of the model itself, but for the sake of the result that allows you to get it. Rigid discipline does not negate flexibility and willingness to innovate.

KPIs are key performance indicators (performance). With their help, you can optimize the activities of the enterprise. Tracking these indicators contributes to the achievement of the organization's goals and allows you to evaluate how effectively the organization's strategy is being implemented.

I work in a trading company, and we use KPIs for payroll for sales representatives and sales department managers. The use of this system allows not only to track the degree of achievement of planned targets by employees, but also to motivate employees to achieve them.

So, for example, the salary of sales representatives consists of two parts: salary + bonus. The bonus is defined as the product of salary and performance ratio. To calculate the success rate, you need:

1) define a set of indicators and criteria for evaluating the work of employees, and the criteria should be consistent with the goals of the organization and cover all key aspects of the activities of employees;

2) set the weight of each indicator;

3) for each criterion to establish a planned indicator;

4) derive the achievement rate for each criterion.

The sum of weighted indicators for all criteria will be the performance ratio.

For example, for sales representatives, we have chosen three key indicators: distribution, measured by the number of outlets served, with a weight of 30%; sales volume in thousands of rubles with a weight of 50% and the number of SKUs shipped to retail outlets (assortment items) with a weight of 20%.

Suppose the bonus is accrued only when the plan is fulfilled by at least 80%, and the planned indicators are as follows:

• the number of active TTs (sales outlets) - 120 pcs.;
• sales volume - 600,000 rubles;
• number of SKUs - 60 pcs.

Assume that the sales representative actually achieved the following:

• the number of active TTs (sales outlets) - 115 pcs. (the percentage of completion was 115/120 * 100 = 95.83%, the achievement ratio was 95.83 * 30% (indicator weight) = 28.75%);
• sales volume - 610,000 rubles. (percentage of completion 610000/600000*100=101.67%, achievement rate 101.67*50%=50.84%);
• number of SKUs - 55 pieces (percentage of completion 55/60*100=91.67%, achievement rate 91.67*20%=18.33%)

Thus, the performance ratio was (28.75+50.84+18.33)=97.92%.

In general, very often the KPI technique is used in production. Simply, at one time I defended my graduation project using the example of my organization, where I also touched on the topic of KPI, which is why I gave an example that is closer to me in terms of the specifics of my work.

KPIs are performance indicators by which a weighted analysis of an employee's performance for the reporting period is carried out. For each position they are different, and in various companies they may differ. They will depend on what goals the company pursues in a particular period of its development.

Sales Representative's Handbook or I work in the "fields"

Any work should be adequately paid, especially if it is done in good faith. but the principle of payroll for field personnel is still one of the most unknown and confusing phenomena in the world. Nine out of ten trade representatives will not be able to explain with sufficient certainty why they earned this much last month, and not more and not less. Most will say that the management is wise, someone will nod at the accounting department, but almost everyone will be sure that they are seriously underpaid. Indeed, fraud with wages in trading companies is not uncommon. Income consists of a fixed and a variable part, which allows the employer to shamelessly manipulate final sum, significantly reduce their personnel costs and keep sales representatives on a tight leash. The purpose of this article is to increase your awareness of the mechanisms for paying trade representatives, to find out the positive and negative sides of each system.

As I mentioned above, the income of sales representatives is formed from a fixed salary and bonuses. However, as a rule, the salary itself is not high and can even be equated to the minimum salary established in the region. In addition, some employers have a bad habit of including car and telephone compensation in their salary. But remember, if at an interview a potential manager persistently confuses compensation with salary, seriously think: in this company they intend to seriously underpay you. It is foolish to mix work and family budgets, otherwise the former will suffer in any case!

Foreign companies (not all) and some domestic companies consider the bonus as a secondary part of the sales representative's income. The principle is professed: bonuses come and go, and the employee should not think at work about what his family will eat tomorrow, so the fix for employees is two-thirds or more of income. In fact, such a humane system does little to stimulate trade representatives to work, because not the most stupid people came up with the principle “as you stomp, you will burst.” The most reasonable system is when the salary is sufficient to meet the minimum needs of the employee, but does not exceed half of the total income.

So let's talk about bonuses.

Linear (percentage) is a very common and predominant bonus scheme. In this case, the income of the trade representative is calculated according to the scheme: salary + x percent of sales (as an option - from the fulfillment of another indicator). Why is she good? In theory, everyone! In this case, your earnings depend only on your performance. If the trade representative works better than his colleagues, then he gets more. However, there are plenty of downsides too.

Firstly, your opportunities are limited by the number of outlets in the territory, their traffic and quality, the seasonality of the goods, their availability in the warehouse, the activity of competitors, and, finally, the volatility of customers. Imagine that you sell ice cream and get fabulous money in the summer, and “suck your paw” in the winter, and despite the fact that the authorities “drip on the brains” every day, demanding summer sales. Or you got a remote district with small shops and poor customers, and a more successful colleague got the Kazansky railway station. And so you run, rush around the territory until late at night, but the result is still weak, and a colleague goes to dinner at twelve, then picks his nose until the end of the day, and as a result gets twice as much.

From this, by the way, follows the second minus. With such a pay system, you always come into sharp conflict with your colleagues. If the salaries of team members differ sharply, then believe me, no amount of reasoning about experience, the specifics of sales, and other significant circumstances will help restore trust between employees. Be sure to appear offended, who will begin to decompose the team. Schemers will also be found who will try to change the situation in dishonest ways, including taking away your best clients.

Thirdly, if you get sick or go on vacation, then most likely you will receive only that very meager salary.

Fourthly, as soon as you start earning a lot, the authorities will definitely change the motivation scheme or transfer to prove professionalism to another undeveloped territory. Consider an example. Your salary is 20,000 rubles + 5% of sales. If you sold 300,000 rubles in a month, then you will receive 20,000 + 15,000 = 35,000 rubles. And everyone is happy. But now the volume has grown to 600,000 rubles and you have been credited with 20,000 + 30,000 = 50,000 rubles. Your salary suddenly became higher than the average for the team, company and specialty in general. The authorities begin to think like this: “Why do we need to keep an expensive trade representative, if with this money we can hire two cheap ones who will not be enough stars, but still increase the coverage of the territory?”

And in principle the company will be right. Such a system corrupts any person if he starts earning almost as much as he wants. At this stage, the sales representative stops thinking about expanding the business and increasing key indicators. Think about it, why work an extra hour a day for the sake of an additional 3,000 rubles, if you already get 45,000, which is enough for a living?

In general, a large salary of a sales representative is a short-term phenomenon. Not a single company, no matter how sincere its principles of caring for field employees may seem, is not interested in their decent earnings. Most firms are unwilling to pay reps fairly, and you will see this happen many times. As soon as the income of sales representatives at optimal labor costs increases, the motivation scheme immediately changes, bringing down all indicators.

Now let's look at the line bonus through the eyes of your boss and understand the main disadvantage of the system in question for him. Working on a percentage depersonalizes the assortment of the company. From the sales representative, first of all, they expect money, and he is lucky. But the manufacturer is always interested in promoting new brands and expanding distribution. What are you most likely not to do unless you get special task. For example, from general plan sales will be allocated the amount that should fall on the key brand. If you fail to complete the special task, your bonus will be seriously reduced. But trade representatives are not stupid either, and have long ago come up with a way out of the situation by selling goods that interfere with quiet work in one or two large outlets, which, you see, does not improve distribution in any way. Those of the sales representatives who fail to do this, having received a meager salary a couple of times, write a letter of resignation, since the demand for representatives of this profession exceeds supply. In both cases, the leader remains in the red.

A fixed bonus is a well-defined monetary bonus that each sales representative can receive if they complete one or more tasks. A fixed bonus, as a rule, does not exceed a third of the salary amount. The size of such a bonus is calculated as a percentage of completion and has a limit threshold. This system it is mainly used by employers who pay sales representatives a quite decent salary (in especially rich companies up to 45,000 rubles).

How is the fixed bonus calculated? Imagine that the maximum bonus amount of 10,000 rubles is paid for completing two tasks. The most important of them costs 6,000 rubles, the second - 4,000. The bonus is calculated if the task is completed by at least 75%. According to the results of the month, the trade representative Ivanov achieved 85% on the first task, 90% on the second one, respectively, he was awarded (6000*0.85=5100)+(4000*0.90=3600) = 8700 bonus rubles. Trade representative Petrov has other figures: 70% and 100%. And his bonus is (6000*0=0)+(4000*1.00=4000) = 4000 rubles.

Why is there a minimum percentage of completion? Is it fair? After all, if Petrov “brings” at the end of the month not zero, but five percent, his bonus will not change. Why not pay the trade representative an additional 4000*0.05=200 rubles? Even though I've been a sales rep myself for a long time, I'll be honest, it's a fair system. The company expects that it employs employees with sufficient experience and qualifications to perform the task. Below is unprofessionalism, why pay for it? A fixed bonus is an optional part of the remuneration, first of all, it is a tool of motivation, encouragement of those employees who are ready to work conscientiously and better than others.

For a sales representative, a fixed bonus has a positive side: in addition to a guaranteed and sufficient salary, he also receives a pleasant increase, and this is with a calm, uninterrupted work. But there is also a significant disadvantage - leveling, because no one will pay you more if the plan is fulfilled, for example, by 120%. Therefore, soon the zeal for work will subside and you will keep within 80 percent, so as not to get hit in the neck.

For an employer, a fixed bonus is a lot of advantages. Firstly, such a bonus system allows you to direct the efforts of the team to solve current problems. Secondly, when planning, the management of sales departments deliberately overstates the final goals. Let me explain, with the task of selling for a million rubles, sales representatives are given a plan for one million two hundred. Trade representatives bring 80% from the "fields", that is, they sell for 960,000 rubles, which practically meets expectations. Third, it is a fixed percentage of labor costs. Fourthly, the preservation of the team spirit, because the incomes of trade representatives differ slightly. Fifth, increase the manageability of the sales process. The only but significant disadvantage is the desire of sales representatives to perform tasks at a certain level.

Of course, the practice is much richer. Many companies use their own, combined schemes to motivate trade representatives, but they are always based on a linear and fixed bonus system.

Whatever the company, large or small, foreign or Russian, manufacturer or distributor, in any case, the remuneration system for sales representatives must comply with the following parameters:

- simple and understandable (when each employee can independently calculate their income);

- correlate with the wishes of the staff (if the employee himself participates in the development of the motivation system, he then works with great pleasure);

- there should not be more than five criteria for accruing bonuses (otherwise there will be confusion, and not only among trade representatives);

- correspond to the labor contribution of employees;

- Meet the goals of the company.

But that's not all! The minimum possible income should be coordinated with the living comfort zone in the given region, that is, determine in advance the amount that allows the employee to live more or less with dignity (namely with dignity!) Until the next paycheck. And least of all, I advise the employer to focus on the average market value of wages of trade representatives: due to regional specifics, it can be both underestimated and seriously overestimated. Both of these options lead to negative consequences For the company.

And an effective payment system allows not only to attract new employees, but also to retain old ones. The lack of such is one of the main reasons for staff turnover. Tell your boss about it and I think he will agree.

5 Comments on “INCOME OF SALES REPRESENTATIVES”

I believe that any management wants to cheat the torpedo, they can come up with a lower coefficient if the plan is not fulfilled, and tell me where this money goes. (of course, to the corman boss)

Hello! Mikhail, the fact is that I had to face the B2B market. The question is how real are the salaries in this market? The fact is that the numbers announced by employers are much higher than in FMCG and 2 or more times. Comment please.

Our company has a strange system: no salary +%, no bonus system. There is a system with a degradation percentage: up to 500,000 - 5%, after the amount of the next 500,000-3%. That is, the salary cannot be more than 40,000 rubles. With millionaires there is already a different system, which also does not allow them to "snack" - they hire an assistant after a million, to whom he must give part of his customers, supposedly for more "productive" maintenance of stores. Accordingly, the assistants are given the most rubbish, and the assistants are without salary, and they have to live for 3-4 months on 15-20 thousand, they often run away, which is understandable: while they try to pick up this rubbish and build up their base .... And then again the vicious circle of degrading interest, as a result of which an artificial debtor is created, T

Ps are asked to transfer money, for example, in January, when sales are really worth it, in order to get something at the beginning of the year, not in December, when the company can actually get them. On the one hand, the management is right: they want high-quality work, dynamics, and an ordinary trade representative is not a superman to fly around all 100 points of his base ... But when they take away your income and put a frame, thereby dooming new trade representatives to a miserable existence for 3-4 months .... Maybe I'm misunderstanding something? In my case, in order not to seriously injure the management, I want to offer an additional bonus of up to 10,000 rubles to this system, but not just for turnover, but for the qualitative development of certain brands, that is, taking into account not only the volume of their sales, but also number of points of sale, come up with a certain coefficient. their ratios. And for the total profit of the company in terms of the number of points of sale of this particular product, the amount of even 10,000 will not be any infringement, and for TP, an additional payment of even 3 thousand will be significant.

Michael, thanks for the valuable information.

Michael, thank you so much for a job well done.

I would like to know what materials in your opinion are of interest in the field of sales.

The best pay for a sales representative is a progressive percentage with , plus additional bonuses for special tasks. But the company understandably does not want to pay a sales representative a salary higher than the market average. Therefore, the majority of firms act quite cunningly. When entering the market with a new product, she makes a salary consisting of a small salary, say 10,000 rubles, which includes both gasoline and depreciation and cellular and plus 4% on sales. As a result, a sales representative who starts to develop a territory from scratch receives the first three months, in fact, a net salary and a small percentage of sales. Say, with sales in the first month for 100,000 rubles, he will receive 10,000 + 4,000 \u003d 14,000 - 13% (tax) \u003d 12180 - 4000 (gasoline) - 3500 (depreciation) - 200 (cellular communication) \u003d 4480 rubles.

I took the average figures for gasoline and depreciation per month, which I spent myself, someone gets less, someone more, compare with mine. As a result, we get a salary of 4480 rubles, which is clearly not serious. Further, with the development of the customer base and an increase in sales for the second month to 150,000, you will receive a salary of 6480 rubles. In the third month, with sales of 200,000 rubles, the salary will be 8480 rubles. I think that it is clear that it is unprofitable to work on new products without a base and for a percentage of sales. I will say that I took my data and all these are real sales and salaries, and therefore we lost up to 90% of employees within three months. But if you compare work in a Russian and a foreign company, then it is better to give preference to work in a foreign company. Because the salary is much higher there.

I'll explain why. The logic of the Russian distributor. Sales representatives must bring money to the company. And if they cannot sell some products, then they are worthless sales representatives and new ones need to be recruited.

The logic of a foreign company, the market is quite saturated, this is not the 90s, when there was nothing in stores and everything that appeared was swept off the shelves. Therefore, in order to place new products on the shelves, certain investments are needed. Accordingly, the salary of sales representatives should be higher than the average for the region, since selling new products and developing a customer base is much more difficult than simply collecting applications for a developed customer base. In fact, it is true, foreign companies pay up to two times more for such work than Russian ones. Therefore, if you are not a beginner and you have a choice, then I advise you to get a job in a foreign company.

While working in a firm, you will face several more obstacles to receiving a salary. One of them is an unrealistic overestimation of sales plans. For example, if sales are expected to increase by an average of 10% next month, then be prepared for the plans to increase percent by 40%. The logic of the company is as follows: anyway, you will sell and will strive to sell more, the company will make a profit in any case, but you will only receive a salary. Thus, the company will save on your salary.

The second way to save on the salaries of sales representatives is to introduce penalties for overdue receivables. Everyone understands that there are stores that pay poorly for goods already delivered, but there are also those that do not pay at all, and there is also a category of stores that close and open in another place, under a different IP, without paying previous debts. It is almost impossible to calculate, when drawing up a contract, who will pay and who will not. And even the security service does not help, all debts are hung on the sales representative.

The way out of the situation is, if possible, to load stores that pay poorly in the last week of the month so that their debt does not hang on the 1st of the month in arrears, and then gradually reduce the debt over the course of the month and take the money entirely in the last week of the month and make the next download. I must say right away that this does not always work out, but it works quite well. Well, those stores that do not pay at all, willy-nilly, you will have to transfer them to the security service, if, of course, the company has one.