Wazua
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Salary Vs Commission
Rank: Elder Joined: 9/15/2006 Posts: 3,907
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@redondo, interesting once again. Your Norm Brodsky may be on to something. I have an account with one broker who's paid on commission and another account with one who's not.
Man, the broker on commission hustttleess; he can even make me buy the wrong share if there was even a dime on my account - very effective guy when I want a share badly, he just must make the deal.
Now the other guy is as professional as steel. Fits me into his queue and when I can't reach him his associates can chip in.
Whatever the prognosis, let me tell you the first guy is very possessive and seems to bring more business to the firm. The second guy is more composed and seems to come to the office later, longer lunches, and takes long uninterrupted leave breaks.
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Rank: Member Joined: 12/2/2009 Posts: 161 Location: nairobi
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mukiha wrote:In 1911 [yes,101 years ago!!], Frederick Winslow Taylor published "Principles of Scientific Management". You can read the full text of the book here: http://www.ibiblio.org/eldritch/fwt/ti.html
Taylor's method was based on the principle that workers should be scientifically selected, trained, and developed rather than passively leaving them to train themselves. Offering higher commissions alone does not guarantee better results. Money is not the only motivator. You need to develop a working sales formula; then train you sales force on how to use it. Supervise them closely to ensure that they produce results....and when they do, pay them the generous commission. Do not assume that since the sale people have some diplomas and degrees in sales, then they can sell. That is hardly ever the case. Good luck. @ mukiha, very useful insight. incidentally upon close reflection i have realized we uknowingly implemented Taylor's method on all our successful products. But for this one problematic product our direct efforts have gone into product development and the selling has been assigned to sales people who were not part of the original "think tank" I wonder though if we are saying that sales people are just robots! What will happen to my company if for one reason or another am not there to shepherd them?
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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redondo wrote:I wonder though if we are saying that sales people are just robots! What will happen to my company if for one reason or another am not there to shepherd them? This was one of the criticisms leveled against "Taylorism". That it treats workers (not just the sales force) like robots. Taylor tried his method mainly on Labourers in the steel factories.... read the book from the link I gave earlier... However; you have found that leaving the sales people on their own doesn't work. So you must find out a working selling method, then train them on it, and then insist that they stick to it without change. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Member Joined: 4/14/2010 Posts: 183 Location: Nairobi
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mukiha wrote:In 1911 [yes,101 years ago!!], Frederick Winslow Taylor published "Principles of Scientific Management". You can read the full text of the book here: http://www.ibiblio.org/eldritch/fwt/ti.html
Taylor's method was based on the principle that workers should be scientifically selected, trained, and developed rather than passively leaving them to train themselves. Offering higher commissions alone does not guarantee better results. Money is not the only motivator. You need to develop a working sales formula; then train you sales force on how to use it. Supervise them closely to ensure that they produce results....and when they do, pay them the generous commission. Do not assume that since the sale people have some diplomas and degrees in sales, then they can sell. That is hardly ever the case. Good luck. @ Mukiha How do you ward off head hunters? These guys let you do all the legwork and training, then step in and whisk away your staff with better offers. Any suggestions on this? So nice that its nasty, so bangin' its busting,
So slick that its sick, so dope its disgusting!
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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@msotoville; It's a simple choice, really. Three options available: 1] Train the team and give them competitive offers to retain them 2] Train them and offer poor rewards and run the risk of losing them to your competitors 3] Don't train them and get poor results ... and they will look for better offers elsewhere. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 4/16/2010 Posts: 906 Location: Nairobi
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Esh, popcorn imeisha. Lemme get another bucket! Eheee...
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Rank: Elder Joined: 11/27/2007 Posts: 3,604
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msotoville wrote:mukiha wrote:In 1911 [yes,101 years ago!!], Frederick Winslow Taylor published "Principles of Scientific Management". You can read the full text of the book here: http://www.ibiblio.org/eldritch/fwt/ti.html
Taylor's method was based on the principle that workers should be scientifically selected, trained, and developed rather than passively leaving them to train themselves. Offering higher commissions alone does not guarantee better results. Money is not the only motivator. You need to develop a working sales formula; then train you sales force on how to use it. Supervise them closely to ensure that they produce results....and when they do, pay them the generous commission. Do not assume that since the sale people have some diplomas and degrees in sales, then they can sell. That is hardly ever the case. Good luck. @ Mukiha How do you ward off head hunters? These guys let you do all the legwork and training, then step in and whisk away your staff with better offers. Any suggestions on this? then, look for money and whisk the already trainned staff. African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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@Sober; Scientific management doesn't work like that. You first develop a working system, then you train your workers on the how to use it...and supervise to ensue that they follow it to the letter. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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...If you poach people from other companies, then you will not be successful because you will not have a SYSTEM... remember what happened to Castle after they poached almost everyone from EABL? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 4/16/2010 Posts: 906 Location: Nairobi
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How about commission-based payments, with an extra percentage added after good performance?
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