The company I currently work for has an extremely competitive sales environment. The company is a medical, dental, and veterinarian supply’s company that is located in the heart of Long Island, NY with operations all over the world. I currently work in the Long Island office, surrounded by New Yorkers who approach sales in a similar way they approach traffic, assertive and aggressive.
The leadership of the sales department clearly states monthly sales goals for each individual sales representative. Depending on the size and typical value of the territory, each goal is different in value and volume of sales. If a sales representative reaches the goal given by leadership, they earn commission on the remaining sales for the month and are eligible for additional rewards. I have only been in the department for a month or so besides my summer spent in the department as an intern, and have noticed how some of my co-workers feel entitled to receive rewards for simply doing what their job requires them to do, sell medical and dental supplies to the best of their ability. Of course the employee’s who goes above and beyond what is expected of them have the right to feel they should be rewarded, but with each representative having different territories with varying characteristics and net worth, jealousy runs rampant.
It is common for some sales representatives to hit their monthly goals in the second week of the month, while others with smaller/unpredictable territories may go months without successfully fulfilling the goals at all. Those who quickly reach their sales goals are eligible for rewards the department is able to budget for. I’ve seen co-workers rewarded with box seats to Mets games, high end espresso makers, iPads, ect. while others who barely reach their sales goal by the end of the month receive what is left of the rewards budget, typically ranging from a free car wash to a 5 dollar Target gift card. There is a large disparity between these rewards, and those who have high grossing territories make out like bandits between their commission checks and rewards on top of that.
Here lies my issue with organization’s that rely heavily on rewards to influence workers to increase productivity and performance. There are members of my department that have a small territory of mainly private practitioner doctors who simply do not need an abundance medical supplies, but they work along side someone with similar experience and skill who might catch fire during parts of the year since they sell to major hospital’s and medical schools. These sales representatives clean house when it comes to the department’s rewards, leaving many others demoralized and jealous.
The chapter commentary mentions “leader’s can influence based on reward power if they:
- Determined what rewards are available
- Determined what rewards are valued by others
- Establish clear policies for fair administration of rewards for good performance”
My department’s supervision lacks a system to fairly administer these rewards, and typically give the best rewards first since that may influence others to reach their goals faster. My personal stance is that approach is not practical and creates a hostile environment, especially when the playing field is not level, and everyone but supervision recognizes it.
References:
Pennsylvania State University World Campus (2014). Lesson 7: Power and Influence. PSYCH 485: Leadership in Work Settings. Retrieved from:https://courses.worldcampus.psu.edu/su14/psych485/001/content/07_lesson/05_page.html
Mai Dolinh says
Your experience is not uncommon in the sales world, and even more so in a big city, where competition is cut-throat. I see your grievances with the “rich getting richer,” this is a gripe many other individuals struggle with in all industries. Your issue with this reward system creating a hostile environment is legitimate. I find the work environment is commonly hostile when it comes to sales. How can we reward some and not others, especially if the playing field is not fair, as you say. If you put yourself in management shoes, you can’t simply give bigger rewards to those with lower numbers. You would demotivate the bigger players from continuing to pull big numbers and satisfy the lower ranking salespeople with their performance. How could one restructure the reward system to make it both fair and motivating?
I think the problem with the current reward system is that it is the same for all employees, yet the given responsibilities are not (i.e. territories). The sales people therefore should be separated into different categories or levels- people with larger territories pulling in an average number of sales in one group; and those with smaller territories pulling in an average number of sales in the other. Rewards should then be catered to each sales level. The sales goals for those with larger territories should be higher than those sales goals for those with smaller territories- this should level the playing field. This should give those with smaller territories a better advantage to reach their goals.
Another change in the reward system could be different reward initiatives besides reaching your sales goal. Some examples:
1. Mets tickets to whoever gets the highest number of new clients in a month. Another goal could be.
2. An iPad to the employee who can sell the most of product xyz (a hard, low selling product).
3. The employee with the most number of client satisfaction surveys in a month get a extra 5% in their commission for the pay period. (this would be particularly challenging to the bigger territory salespeople. More clients, makes it tough to keep track of everyone and their satisfaction)
These changing reward incentives give employees a change in gaining rewards, keeping them active, motivated, and challenged. I think when you are unhappy with a work situation or policy, you should try to change it. If everyone is unhappy with the work situation, you should all work together to change it! Even though you are competitors, you all are working for the same company and toward the same goals. You don’t have to be in a leadership position (aka. a boss or supervisor) to take on a leadership role. Talk to your associates, come up with a plan, and ask for change. If you are not a leader at your job, be a leader in your life!