Self-development 

Calculation of bonuses for an employee of the wholesale department. Calculation of bonuses for sales managers. What it is

The monetary remuneration of all employees of the company should consist of two parts - a constant and a variable (bonus), depending on performance indicators. When determining the size of the premium, the fulfillment of the sales plan is necessarily taken into account, while the ranges are distinguished - upper, lower and middle. Such a system allows employees to strategically develop their potential in working with clients. A one-time failure to fulfill the plan is not a disaster for them, but a signal that next month they need to catch up and improve their performance.

The minimum sales plan for the company is calculated on the basis of constant indicators, taking into account the general situation on the market. During a crisis, this is a break-even point + 30% for protecting the business, during a period of market growth - the maximum turnover of the company per month (of course, it should not be lower than the "crisis" option).

Bonuses are tied to the implementation of the sales plan not only for employees of the sales department, but also for other personnel, such as accountants. The bonus for sales managers is most often calculated as a percentage of gross profit in rubles (company turnover minus fixed costs), and for an accountant, you can enter such an indicator as the volume of processed accounting documentation. Since all employees are divided into two categories - those that affect and those that do not affect financial performance - their performance, depending on this, should be measured either in money or in natural units.

The remuneration scheme can be described in a single complete document available to all employees, or in separate documents for departments. It is essential that everyone can calculate their income and understand how this income is calculated. What other information is worth showing, and what is not, depends on the circumstances. That which will help to develop the spirit of healthy competition must be made known to all; about what can create tension, it is better to report only to a limited circle of people and individually (whom it directly concerns).

When determining the constant part of the remuneration for sales staff, I recommend focusing on the following ratios:

  • During the period of market stability and growth, the salary should be on average 50% of the employee's total income per month and accrued subject to the employee's compliance with labor discipline and the standards defined by the standard (for example, 25 calls to new customers or 30 calls to regular customers).
  • During the period of financial instability, the constant part decreases to 30%, and the variable, respectively, increases to 70% and should be a larger percentage of the total amount of transactions than in the first option.
  • At the moment, I propose a middle ground - the salary is paid in accordance with the completed personal sales plan, that is, the more sold, the more interest and salary received.

An example of a company that builds a sales system for regular customers:

job title

Bonus for Standards

Plan per month

Senior manager

Manager

Head of Sales Department

Office Administrator

Terms:

The transition to a higher category can be carried out when the plan is completed per month.

If an employee does not fulfill a personal sales plan, then he is transferred to the previous level.

Company standards:

1. Meeting daily standards (for a trial period during the formation of the client base 120 calls or 5 meetings in the office or on the road)

2. Fulfillment of the minimum sales plan

3. Discipline, business dress code

Many companies want to return to the scheme of the 1990s, when sales managers received only a percentage. Of course, this is more profitable for the enterprise in terms of remuneration, but do not forget that people want stability, and changing staff is always a waste of time.

It is important to reflect in the reward scheme your attitude towards employees - whether you like them or not, whether you are satisfied with them or not. This attitude is directly reflected in their desire to work well and, accordingly, in the result. If necessary, our specialists develop psychological standards for companies that help unite the team, guide the actions of employees, improve professional and human qualities, and generally change the view of managers on subordinates. If we are not satisfied with our employees, we should not change them (if they are not alcoholics, not drug addicts and not thieves), but our attitude towards them. Our employees are a mirror of our own shortcomings as managers and our development in the field of people management. Only a few have a natural talent for managing people, and this skill must be constantly learned. There are three types of management: command-administrative, socio-psychological and economic. These three levers must be used. Moreover, economic levers are combined with the other two, but the socio-psychological lever can never be used with a command one. The art of management is the impact on the psyche and the task of the manager. So that after such an influence of the leader, one would want to run and move mountains. It is better to put pressure on conscience. A well-designed remuneration scheme directly links the actual salary of the sales staff to the achievement of the company's goals and, thereby, makes the employees and the company allies. A manager who is interested in the results of his work takes the initiative and takes responsibility, acting in the interests of the company. He knows by what indicators his work is evaluated and whether he is fulfilling the plan. The level of income of an employee is determined by the results of his own efforts and reaches a maximum when the tasks set by the company are fully completed, so the employee has a clear prospect for his own development. And since in most cases the amount of remuneration depends on the profit of the company or on factors that directly affect this profit, piecework payment actually means participation in profits.

When applying a unified system of piecework wages to any category of employees (in this case, to sales managers), transparent payroll is possible. At the same time, there are no conflicts about “who got more” - everyone knows that the one who achieves better results gets more.

Piecework payment helps to improve planning and forecasting of financial indicators, develop operational control (self-control) of work results and other elements of business management. Employees independently act in the interests of the company, not needing instructions from the head at every step.

Prizes and bonuses

The sales bonus order is issued every month so that if the bonus scheme changes, you can make the necessary changes without waiting for the end of the year. Understandably, if performance isn't to your liking, then rewards are one of the most important levers you can use to influence employees, although when the scheme is working effectively, the same form of command can go on unchanged for a long time.

An important question is from what, i.e. from which value the percentage should be calculated. This indicator can be sales volume, turnover or simplified margin. If the margin differs for different groups of goods (for example, for a product that a company buys, there is one markup, and for one that it produces independently), then the percentage of the transaction amount will depend on which product the merchant sold. If the manager does not want to disclose the markup system (which he has every right to), he can use the average margin for the company.

When planning sales by months, seasonal fluctuations in demand are taken into account. It is better to break the planned indicators into subgroups: the maximum plan, the norm plan and the minimum plan. The minimum is the plan that the company has completed, the maximum is the one that you are striving to fulfill, the norm is the average between them.

Each employee should have a personal sales plan. If this plan is not fulfilled, a reduction coefficient is applied to the amount of commission, depending on how many percent the plan is fulfilled (see table 1).

Table 1. An example of a scheme for calculating the reduction factor in case of non-fulfillment of the plan.

For example, if the plan was fulfilled by 73% and the amount of commission amounted to 23,000 rubles, it should be multiplied by a reduction factor of 0.9: 23,000 × 0.9 = 20,700. Accordingly, when the plan is overfulfilled, an increasing factor can be used (see table 2 ).

Table 2. An example of a scheme for calculating the multiplying coefficient when the plan is overfulfilled.

An even more powerful tool is bonuses to department employees for fulfilling the overall sales plan. Here, a fixed amount is already paid, not a percentage: for example, the department fulfilled the plan - the boss receives an additional 10,000 rubles, and managers - 5,000 each. The bonus is given even to those who have not completed their personal plan - it is only required that the manager in this month there were sales (see table 3).

Table 3. An example of a scheme for calculating bonuses for the implementation of the plan.

Bonuses help to achieve specific financial results from the team as a whole. For example, if a manager does not fulfill the sales plan this month, but already sees that next month he will definitely overfulfill himself, he most likely will not go out of his way to make sure to make a deal with such and such a client before end of the month. And it is a completely different matter when the general plan depends on this, and the general (and his own) bonus depends on this plan. The head of the department receives bonuses for consistency in addition to the bonuses for fulfilling the plan. They are paid if the plan is fulfilled for two or more months in a row.

Development of a piecework system

The piecework wage system can be developed for a given unit or a given category of company employees; it is also possible to develop several interrelated payment systems for different categories of employees (for example, for the director of a network of salons, heads of salons and various categories of salon employees).

At the stage of preparing a piecework payment system, it is necessary to:

  • determine the goals of the company facing the unit / employees;
  • determine (identify) the results of the activities of the unit / employees, which must be objective, measurable, protected from falsification and consistent with the goals of the company; if necessary, develop and implement also a system of operational control of results;
  • develop and approve a plan for achieving results for the unit / employees, which determines the timing and quality of achieving the company's goals;
  • make a decision on the need to develop a piece-rate wage system for the unit / employees. Determine and, if necessary, agree with the director and / or head of the department the expected income interval for employees;
  • determine the possible ratio of fixed and variable parts in the income of employees;
  • determine the factors on which the achievement of the results and goals of the company depends and which are in the sphere of significant influence on the part of employees; if necessary, develop and implement a system of operational control of these factors;
  • determine (select) the main dependence of wages accrued to employees on the results and / or factors, as well as on the degree of implementation of the plan;
  • choose a prototype for the developed wage system;
  • develop a payroll system: the procedure for calculating the fixed part, the mechanism for calculating the variable part, the procedure for bonuses and / or fines;
  • check the developed system of piecework wages:
  • for the compliance of the payroll results with the planned interval of employees' incomes: when calculating based on the results of previous periods, when the plan is fulfilled, when the plan is underfulfilled, when the plan is overfulfilled, with significant (2-3 times in one direction or another) deviations from the plan;
  • the extent to which employees can influence the factors taken into account in the remuneration system, and who (what) else can influence these factors (including infringing on the interests of employees);
  • on the transparency of the calculation scheme for employees: do they have the opportunity to independently calculate their own salary, track changes in their future income?
  • on the balance of interests of employees and the company: won't the payment system indirectly encourage employees to neglect some official duties (those that do not directly affect their income)?
  • resistance to possible abuse by employees;
  • the ability to correlate it with the previous payment system;
  • the extent to which it will stimulate the professional growth and personal development of employees.

At the implementation stage it is necessary:

  • coordinate the developed remuneration system with the director and / or head of the unit, lawyers, accountants and (if necessary) with employees; make the proposed amendments to the payment system and re-test the system (see above);
  • determine the date for the introduction of a new wage system, and a list of documents that need to be prepared before that;
  • check the operational accounting and control procedures of the initial data necessary for payroll calculation;
  • hold a meeting with employees to announce the introduction of a new payment system, present it to employees, explain the principles of payroll, answer questions from employees; convince employees of the superiority of the new system, conduct internal PR;
  • prepare the necessary documents, including an order to change the wage system;
  • implement a payment system.

At the stage of system operation it is necessary:

  • constantly maintain feedback with the head of the department and employees, identifying failures, inaccuracies and bottlenecks in the system; consider proposals for the improvement and development of the system, regularly check it (see above);
  • if necessary, promptly correct the system (if such a situation arises, it must be discussed with employees, leaving nothing at the mercy of omissions and guesswork; try not to infringe on the financial interests of employees);
  • not to consider the payment system as something unchanged, but to continuously improve and develop it in accordance with the change and development of the company's goals.

Example 1

The atmosphere in the two stores of the same building materials company is noticeably different: in the carpet store, goodwill reigns, in the wallpaper store, customers are almost hated. Why? The payroll system is the same in both cases - sellers receive a certain percentage of the gross proceeds (money received from the sale of goods). But carpets are more expensive than wallpapers, therefore, with the same labor intensity of each sale (show, persuade, arrange), the revenue from it in the carpet store is higher.

Table 4 shows the results of the carpet store for the month, Table 5 shows the results for the same month for the wallpaper store.

Table 4. The results of the carpet store.

Table 5. Results of the wallpaper store.

Note: The figures in both tables are conditional.

Everything is clear: the salespeople in the wallpaper store worked better than in the carpet store (they have more sales, and the turnover is almost standard), they “didn’t reach” the planned indicators quite a bit, but they helped out less, and they were awarded a lower premium . There is injustice. How to eliminate it? To do this, we introduce another indicator - the overall performance, which in this case will be calculated as the product of the performance in terms of turnover by the performance in terms of the number of sales. For the carpet store, the total performance for the month under consideration will be 0.88 × 1.03 = 0.91 (91%), and for the wallpaper store - 0.96 × 0.97 = 0.93 (93%).

Now let's move on to wages. It will consist of two parts - "basic" (permanent), which is set for each seller regardless of output (but may depend on knowledge, experience, etc.), and "premium" (variable).

“But this is common knowledge,” the reader will say. “Salary plus bonus.” But no! After all, we have not yet said how we will calculate the premium. We will calculate it not as a percentage of turnover, profit or gross revenue, but as the product of the base part and the overall performance.

The size of the base part will be set so that the final salary (the sum of the base part and the bonus) with an overall performance of 70% corresponds to the average market. Then the employee will start receiving the actual bonus (income exceeding the market average) only if he shows a higher result.

In other words, we will be able to fair a pay scheme in which the employee is adequately rewarded for achievement and suffers moderately in the event of failure. With this approach, we no longer need to define the "employee's contribution to the common cause" in order to compensate for the clearly insufficient amount of the bonus (calculated as a percentage of profit, gross revenue, etc.). Just as important, employees will not have a reason to complain about the “unfair” distribution of bonuses, and unpleasant thoughts will no longer distract them from work.

The calculation of wages in both stores according to the proposed scheme is shown in Table 6.

Table 6. Payroll calculation using overall performance ratio.

Such a scheme was applied. Now the stores are "family friendly."

Example 2

Sometimes they say: “It is good to set a minimum performance where employees have both a fixed and a variable part of their wages. And if there is no permanent part at all? For example, when it comes to agents? After all, the agent, in fact, "sits on a percentage" and, no matter how he works, "does not ask for food." Does the manager have the moral right to put pressure on agents?

One day, the director of a company selling expensive goods decided to lure the best sales agents of the city to him and for this he doubled the percentage of agency fees compared to competing firms - from 15 to 30% (fortunately, the margin allowed). The result is by no means brilliant. Of course, there were a lot of agents, but a high percentage attracts everyone - the best, the average, and the worst. Therefore, the proportion of good workers has been and remains low.

"It's okay," said the director. They don't ask for a paycheck. If there is a deal, there is a percentage; if there is no deal, there is no interest.” But in reality this is not so. Although the agent does not receive a fixed salary, the company still spends money on him: he takes up a workplace, uses a telephone, a copier, inevitably distracts management and other employees, and if he works carelessly, he creates a “relaxed” atmosphere around him.

Getting rid of negligent agents (or, what is the same, making agents work better) was helped by the introduction of a new remuneration scheme, in which the percentage due to the agent depended on the productivity of his work (see Table 7). If the agent brought little money to the company, the percentage is low, and it makes no sense for him to work in this company - competitors would pay more (for example, 15% instead of 10%).

Table 7. Determination of the percentage due to the agent, depending on the performance.

Let's see now how to calculate the agent's salary. Suppose, according to the standard, an agent must conclude at least four transactions per month for at least $1,000, but actually concluded three transactions for a total of $1,100. Then its efficiency in terms of turnover is $1,100/$1,000 = 110%, its efficiency in terms of the number of deals is 3/4 = 75%, and its overall efficiency is 1.1 × 0.75 = 0.825 (83%). We find the remuneration according to the table: with a performance of 81-90%, this is 23% of the turnover, i.e. the agent should receive $1100 × 0.23 = $253.

Common Mistakes

To summarize: what are the mistakes that prevent managers from properly building a reward system?

1. The use of the most “understandable”, but not always the most appropriate financial indicators, such as profit or turnover of the company, as the basis for calculating the premium.

2. False alternative: the assumption that only one indicator can be the base: for example, either the turnover or the number of sales, but not both. Both of our examples use a composite metric—overall performance—and this is what gives us a satisfactory solution. So it is quite possible to take into account two indicators.

3. Lack of understandable personnel (or, as advertisers say, "positioned") performance standards. Often it is not clear what is bad and what is good work, what and how specifically is encouraged and what is not.

4. Averaging the salaries of managers with the same functions but different types of clients. As a result, it becomes almost impossible to establish a benchmark.

5. The distribution of bonuses between employees in the absence of a unified, understandable system for evaluating performance, which causes many conflicts and minor grievances.

6. Attempts to prevent the "stratification" of employees into "rich" and "poor". Communism cannot be built even in "one single firm."

moral encouragement

A very effective way of moral encouragement of the best sellers, I think the board of honor. You can call it something else - for example, "Slaughterer of the Month", "Leader of Sales", "Star of the Month", etc. - if only there was enough imagination. It is important that there is a board and that professionally taken 18×24 photographs are hung on it. In my practice, there was a case when managers competed with each other not for a ruble, but for the right to show off on the honor roll.

To maintain the spirit of competition, it is also worth praising the best managers at planning meetings and meetings: announce who has the highest rates (for example, calls, receipt of applications, shipments, meetings), set these employees as an example to others. Others also want publicity, and very often they, intuitively striving for this, begin to work better.

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

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Wages are calculated according to a certain 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 who expect the promised payment based on performance.

One of these systems is bonus, 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 income depends on the performance of the staff. It is characterized by the ability to increase remuneration by working capacity 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 a good reward is due. Otherwise - the 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 diligence of employees, to identify unscrupulous individuals who do not want to work at full capacity;
  • allows you to monthly fulfill production and sales plans, increase the profitability and income of the company;
  • prevents conflict situations among staff that arise against the background of a lack of well-coordinated work;
  • eliminates taxation on large amounts (income tax is removed only from the salary part);
  • employers have the opportunity to reduce the cost of sick leave, vacation, maternity.

The bonus system is beneficial, first of all, to employers. They have the opportunity to enter a bonus deduction table, 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 the bonus system, other options for calculating wages are also possible. For example, the 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 applicable

The bonus system is mainly used in trade and insurance. The legislation of the Russian Federation does not approve 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 issued at all.

Therefore, most companies that practice the bonus system always need employees and easily accept everyone, regardless of age, education, employment.

Initially, the bonus system in the provision of services was an income by the method of "imposing".

Workers had to trade goods by any means, offer various contingents of people, talk about non-existent advantages of products.

By selling one piece, you could get a certain percentage of the proceeds. And so the bonus system was born, which is actively used by modern businessmen.

The bonus system can also be used in production in a medium-sized company. In this case, the bonus part is given to workers for several achievements: the fulfillment of the plan (or for the amount of work done), for the length of service in the company, the 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

Consider the simplest way to calculate wages using an example. In company "N" the rate per unit of goods sold is 2 rubles.

The official salary is 8,000 rubles. For 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 in a month, then he will be paid 10 rubles for each unit. If he does not fulfill the plan, then the unit cost will be 6 rubles.

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

Another option is also possible. A bonus in the amount 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 met, no bonus is 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 if the company's efficiency increases, an additional bonus is paid. All job seekers will agree to work on such conditions if the cost of their services is above the minimum values.

Bonus system of remuneration for sales managers

Sales managers are the most common profession in bonus pay. The salary of such employees depends directly on the work performed, or rather, on attracted customers and sold products.

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

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

The salary must not exceed 50% of the bonus This provides an incentive to improve work efficiency. So, it is not profitable for a manager to work for a “bare” salary, and it is very attractive to receive a salary every month that exceeds the official part by 2-3 times.
Salary must be at least 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 better salary. And since at first managers work almost exclusively for the official part of the salary, they will be employed where they promise a good salary.
Managers need to know how much they can get, and how much they will earn at first You should not promise new employees "mountains of gold" and say that from the first months of work they will earn as much as managers with decent experience earn. Employees need to draw a diagram or provide a table that shows all the indicators of his possible earnings

The profit of the company 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 be set up only for productive work.

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

Pros and cons

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

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

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

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

Consider the cons:

As for the employer, the bonus system carries only positive aspects. The company is not responsible for the payment of the bonus part, bonuses can be issued periodically.

Strictly speaking, it would be more correct to use the term "Incentive system", but it just so happened that most managers are more accustomed to using the term "Motivation system". There are many variations of motivation schemes for sales managers, and in this article we will talk about the most popular of them.

Sales Motivation #1: Sales Percentage

Perhaps the most common motivation system for sales managers. An employee receives a certain percentage of the amount of sales to his customers. There are several types of such motivation:

  • Fixed percentage. The interest rate is constant and does not depend on the volume of sales;
  • progressive percentage. In this option, a scale is introduced according to which the percentage of sales increases when a certain bar is reached. For example, you sold 100,000 per month - get 5%, reached 200,000 - your 7%.

It is worth noting that the basis for calculating the percentage can also be different:

  • Percentage of total revenue (turnover). The easiest option for managers to understand and the most common option. The main disadvantage of this method is that the manager, being only interested in the volume of sales, can give customers unreasonably low prices and, thereby, reduce the company's profit;
  • Percentage of profit. Of course, the profit indicator in the full sense of the word (revenue minus all expenses) cannot be used - so managers will get confused and no longer understand what their income depends on. Rather, it is about the difference between the purchase and sale price. Such a scheme of motivation is most appropriate in those companies that are engaged exclusively in distribution. The option is good because the desire of managers to make extra concessions to customers will always rest against their personal pocket. Gave a discount - lost part of the premium.

Sales Motivation #2: Rewarding the Plan

The second most popular method for calculating the variable part of the payment of salespeople. The essence is simple - at the beginning of the month, the manager sets a certain bar, upon reaching which managers receive a bonus. The main advantage of such a scheme is that the targets may change depending on seasonality and sales forecasts. For example, a plan for revenue in December (peak season) and May (low season) may differ by a factor of two, while the premium may be the same.

At the same time, as in the case of a percentage of sales, the amount of the premium can be fixed or progressive:

  • A fixed bonus is a specific amount by which the manager's salary is increased if the plan is met. The scheme is suitable for companies with a high planning culture, where you can predict expected sales quite accurately and set the plan a little higher. It is worth noting that in this option, most of the seller's income should consist of a fixed part (salary), and the bonus should be a small but pleasant addition;
  • Progressive premium or the so-called premium showcase. In this option, several levels of bonuses are assigned, each of which corresponds to a certain level of fulfillment (or, more precisely, overfulfillment) of the plan. For example:

Prize Level

Implementation of a plan

Prize amount

10000 rubles

20000 rubles

30000 rubles

The advantages of such a system of sales motivation are obvious - on the one hand, managers always have an incentive to overfulfill the plan, on the other hand, the company is insured against accidental "departures" over the budget, when, as a result of one key (and possibly random) transaction, the manager's bonus exceeds all reasonable limits.

Sales Force Motivation #3: KPIs

KPIs ( English Key Performance Indicators- Key Performance Indicators) is a system that is an advanced version of the option with a bonus for the implementation of the plan with one important feature - within the same motivational scheme, you can combine different indicators.

Consider the possibilities of using KPI on the example of a sales department engaged in attracting new customers. Obviously, the most obvious indicator is the same sales volume (that is, the money that new customers will pay the company). But another indicator is just as important - the number of new customers. After all, firstly, a new client can start with a small trial order and gradually, over several months, reach working volumes. Secondly, there is always a risk that managers motivated only by sales volume will not carefully work out clients with small initial orders. Below is an example of a manager's motivational map, in which these two indicators are linked to each other:

Index

Revenue from customers, rub.

Number of clients, pcs.

Grand total

Here you need to decrypt the graph:

  • Plan. At the beginning of the month, we put the planned value of the indicator in this field;
  • Fact. This is the actual value achieved as a result of the manager's work by the end of the month;
  • The weight. determines the degree of significance of each indicator. The sum of the weights of all indicators should be equal to one. In the above example, each of the indicators has the same weight, but depending on the tasks, we can shift priorities by decreasing or increasing the weights of the indicators. For example, you can set the weights to 0.8 and 0.2 respectively. In this option, the final result will depend on 80% of the implementation of the revenue plan and only 20% on the quantitative plan;
  • Outcome. In this column, we calculate the actual contribution of the results achieved for each indicator to the final percentage of the plan (determined by the formula (fact / plan) * weight * 100%);
  • Grand total. Here we summarize the results for all indicators and get the total percentage of the plan.

In our example, the manager exceeded the target for revenue, but failed the target for the number of customers. As a result, the overall percentage of the KPI plan was only 80%.

There may be more than two indicators. There are entire libraries of KPI indicators, where it is easy to find several dozen indicators for almost any area and position. However, do not get carried away and include more than four indicators in one motivational map - it becomes extremely difficult for employees to understand what actions they ultimately lead to receiving a bonus. The best option is two or three key performance indicators.

What formula should be used when calculating the salary of a sales manager so that his motivation is constantly growing, and at the same time, employees do not have dissatisfaction? Is it worth applying the coefficients for seniority in the company? Business.ru experts share their experience.

Expert opinions on the calculation of the salary of 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 KPI flexibility. For example, if a certain product was stale in a warehouse and it needs to be sold, a motivational scheme should be made so that the seller would like (be profitable for himself) to sell this product.

For example: when fulfilling the sales plan - such and such a percentage, when fulfilling the plan for certain models - a multiplier.

The second point, 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 implementation of the sales plan by his department, there must also 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 - a multiplying factor.

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

The Biznes.Ru CRM system will allow you to fully control the sales department, calculate the salaries of managers, manage customer relationships, work productively with leads, and also increase the efficiency of employees.

There is also a good profit from the sale of cross-products or services, and the seller should not neglect this fact. You can also add a factor to increase remuneration 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 completing your own plan, plus a multiplier (for example, 1.5) for the department to complete the plan, plus a percentage of the profits from the sale of additional services, and an overall multiplier of 0.5 to the total amount for a high customer satisfaction score.

For the manager, it is only important to understand that the motivation system must be transparent (understandable to the seller) and easy to calculate, so that the seller understands how his salary is calculated. But at the same time, don't oversimplify it.

For example, set a plan for the sale of such and such a quantity of goods, and that's it. This is rather a demotivator, since the seller will aim at the implementation of this particular plan, fulfill it, and then will sit still and wait for the end of the month.

Is it necessary, is it useful for business? The motivation system should motivate, stimulate the seller, make him 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 salary of a manager consists of 5 indicators:

  1. Fixed part (25% of the total amount to be issued).
  2. Bonus for the amount of personal sales (25%).
  3. Bonus for the fulfillment of the general plan of the company (15%).
  4. Premium per plan based on the number of primary customers (31%).
  5. Bonus "for the absence of claims from customers" (9%).

For example, the fixed part is 8,000 rubles. Prize "for the absence of jambs" - 2,000 rubles. These are immutable values. In fact, this is the minimum that a manager can count on with 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 made 100%, the manager will receive + 5,000 rubles. If the plan is fulfilled by 80%, that is, the revenue amounted to 1.6 million rubles, then the manager will receive 80% of 5,000 rubles, that is, 4,000 rubles.

Such a system allows the manager to be motivated to sell more (initial orders) and sell to repeat customers (company turnover plan premium).

Timur Lavronov, PR Director, Vertex:

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

For example, you cannot change the motivation of employees at your own discretion. The leader says: "I want to pay a bonus for the implementation of the plan, give me a twofold increase in the plan." Dear owner! It is not possible to double the plan while maintaining the motivation "bonus for the implementation of the plan." 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 more commission he will receive. If, for example, a manager sold goods worth 1 million rubles a month, then he receives 5% of the proceeds. If he sold for 1.2 million rubles, then from a part of this amount of 1 million rubles. he will also receive 5%, and with 200 thousand rubles. he receives already 7% of the proceeds.

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

The more sells, the greater the commission of the entire amount as a whole. Such financial motivation encourages the manager to sell as much as possible. Such 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.

No “percentage of net profit” is all lies that the manager will not believe. He does not see your net income, because net income is calculated minus salary, you will not tell anyone your salary as a director, you will not tell anyone about all office costs, and so on. Therefore, it is considered from revenue or from gross profit.

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

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

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

Two or three years pass, the manager acquires clients, sales are already repeating. The work that the manager does requires less labor. And the amount for which he sells has grown, 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. You overpay the manager: he makes repeat sales that require less effort and time.

In this case, it is reasonable to use the planned bonus system. At the same time, set the plan less for a novice manager, more 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.

First, because of the manager's lack of confidence in the fairness of how you plan. The fact is that from the achievement of the plan will depend on whether he receives his bonus or not. If the plan is too high, it is likely that the manager will not receive the bonus. Secondly, managers do not agree that they are given different plans.

For example, one has been working for five years and for him the plan is 5 million rubles. Another employee has been working for a year and for him the plan is 1.5 million rubles. At the same time, they receive the same salary and bonus. The dissatisfaction of an experienced employee 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, account manager.

If you do not have the ability to set a plan and a standard, yes, there is a certain plan that suits your CEO, but can you determine the plan between employees at your own discretion? Distribute this plan among different products? Regions? Departments? No, you can't - okay, you're additionally shackled in the legs.

There is one more thing. Trust gives rise to a desire to justify this trust, and not to deceive, 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 out bonuses for themselves.

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

CRM-system for the store from Business.Ru allows you to control the working hours of sellers, record the opening and closing of the store. A special event log will 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 is bearing fruit. "Employee Karma" is a kind of virtual account, flexible and understandable. If the employee's KPI is higher, then his karma grows.

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 the salary of a sales manager seems to us inappropriate. Regardless of the direction in which a person works, motivation should not be increased only with the help of the financial component.

Or, partially with the help of the financial component, but within the same direction, for example, sales. The motivation of all employees should grow. Ultimately, each of them contributes to one common great cause.

Svetlana Makarova, Director, Makarova S.A.:

A sales manager is an achiever, so when developing a universal payroll formula, it is important to pay attention to the motivational part. A manager cannot only receive a salary - this is a prerequisite 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 / bonuses from sales. Avarice 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 the salary of the unchanged part, which the manager will receive under any conditions. The second component of income is bonuses, which should not have a "ceiling". How much you earn, how much you get. Simply put, we allocate a percentage that we are willing to pay from the sale of each product of the company.

The manager should receive this percentage by default, so he will understand that he can increase his income. Nevertheless, it should be borne in mind that the sales manager is a rather unstable staff, therefore, salary + bonus from sales is not a panacea for retaining and developing an employee.

Therefore, we add to this formula an additional motivation that will become a catalyst for increasing sales for the entire department. So the company will get the maximum result, 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 premium from sales by 5, 10 and 25%, therefore, if the sales volume is overfulfilled by 25, 50 and 70%:

  • Target sales = salary + sales bonus.
  • Overfulfillment by 25% = salary + sales bonus x 5%.
  • Overfulfillment by 50% = salary + bonus from sales x 10%.
  • Overfulfillment by 70% or more = salary + bonus from sales x 25%.

And with the finishing touch, we set several levels - 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%, who will understand: how much he can earn and what he needs for this.

And you can also easily separate the grains from the chaff, as an employee who is not focused on results, against the background of colleagues who receive several times more, will either begin to actively act, or the company will be able to systematically replace the frame 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 in the state will demotivate colleagues!

Read articles about organizing the work of a sales manager:

Combined with return on capital.

Remuneration of managers in non-profit organizations

Advantages and disadvantages of using different types of securities to reward managers

Managers of firms that practice planned bonuses are more likely to apply those accounting methods that increase the reported profit of the current period. This choice appears to increase the present present value of the awards, unless the compensation committee of the board of directors makes an adjustment depending on the method chosen.

The basis for calculating bonuses should be favorable deviations from the plan. This implies that, generally speaking, the personnel and management of departments work for wages and at the same time deserve about bonuses for the exact achievement of planned indicators (this is completely normal when an employee clearly copes with the functions assigned to him for his official salary). The bonus fund of both the enterprise as a whole and individual employees, managers and departments begins to accrue when the planned (budget) task is overfulfilled. This is exactly what is not observed at most Russian enterprises, where bonuses are most often based on absolute indicators (a 1% reduction in the cost of production, an increase in sales by 1%, etc.), and not in comparison with the planned target, but in comparison with base, that is, indicators of the previous budget period.

The program manager distributes the bonus fund for innovation among co-executors (specialists of the target team). In addition, he can make representations to higher managers about rewarding or punishing performers based on the results of their participation in the program.

Such workers may be motivated to change if they see that it promises them higher wages. However, if the reward scheme is not modeled correctly, they will be able to find its weaknesses and loopholes in order to receive higher rewards, even though their actions may undermine the very essence and promise of change. An example is the personal bonus scheme offered by the Convention Center to its managers, based on the number of orders for large-scale training courses with payment of 80% of the list price. Managers immediately realized that the best strategy in this case would be to sell only some services with an 80% fee and include a number of other, smaller services for free (such as the provision of lecture posters, demonstration television and video materials, photocopying of educational materials) . This allowed them to close more deals and receive high premiums. It wasn't until after the bonus scheme had been in place for a full year that senior management realized that its goal should have been to incentivize maximum revenue from deals, no matter how many. Similarly, if collaborating with colleagues, which is a sensible approach in a time of rapid change, threatens to reduce personal rewards, the employee will try to keep collaboration to the lowest possible level.

The company has developed a system for assessing the remuneration of managerial personnel. The system contains 10 criteria, for each of the criteria there are several degrees of complexity. Each degree of difficulty is estimated by a certain number of points. According to the results of the certification, each employee was assigned a salary (the main guaranteed part of the salary). Based on the data in Table. 11.5 determine the salary of the production manager, personnel manager and lead engineer of the company. The conditions for bonuses for these employees for the current month have been met, and the additional part of the salary for the manager is 15%, the personnel manager is 10% and the engineer is 10% of the basic salary. One point is valued at 100 monetary units.

Individual elements of the motivation strategy are developed independently of one another, especially if each of them includes several components designed for different categories of personnel (for example, numerous bonus programs for managers and ordinary employees, a decentralized personnel training system, etc.)

After numerous improvements and checks, the initiative group received a "go-ahead" from the management for the implementation of the developed bonus program. At the same time, managers made sure that the staff is sufficiently familiar with and understands the essence of the upcoming changes.

Formation of a certain number of focus groups of ordinary employees and managers to study the reaction to the content of the new bonus program.

Development of a detailed information package for all line managers and their assistants, including a summary of the content and structure of the performance-based bonus program,

Although the company has not implemented any progressive communications system, managers report a significant increase in productivity and improved product quality. They see this as a significant merit of an active capital investment policy and other measures, among which the introduction of performance-based bonuses is invariably noted. Summing up the results of the implementation, managers note that one of the main achievements at the moment is a much deeper awareness of the personnel of the company's strategic goals and the conditions for its functioning.

Managers believe that in the year and a half of its operation, the bonus program has gained popularity among the staff and encouraged employees to be interested in up-to-date and current financial information about the company's activities. As one senior manager said, "Its biggest advantage is that now all the staff are aware of our production problems, and the energy of the employees is focused on priorities for the prosperity of the company."

Table 2.2. Assistant Managers Bonus Program /info/22662 "> Dissemination of information about the bonus program. The initiative group considered it necessary to create a special information program dedicated to both further business development prospects and the implementation and results of using the new bonus program. It was decided that not only top managers, but also regional managers.Informational materials included a set of slides, brochures describing the incentive program and its implementation procedures.In addition, meetings were held between managers and their assistants to ensure that they correctly understand the content of innovations.The meetings examined examples calculation of remuneration on the basis of data for previous years and planned indicators for the next year.It should be noted that the sales personnel undoubtedly have a positive attitude towards the introduction of a new incentive program.

In addition to performance-based payments (salary, bonuses, long-term bonus programs), non-profit organizations often provide additional benefits and compensation to employees. As a rule, they are received by top managers, i.e. "unauthorized persons", therefore, control over the validity of these payments is essential. Below we consider the most common types of such benefits and compensations, as well as the problems associated with them.

The role of current bonuses in the strategy of remuneration of managers

Let's consider some examples of the concept of a direct connection between the activities of a manager and the dynamics of indicators for bonuses.

The assistant production manager is covered by the current bonus program, which is based on the dependence of the size of the bonus on the dynamics of the company's sales volume. The corporation has eight factories in the US and two in Europe. In this case, there is no connection between the activities of the assistant manager and the total sales of the multinational company, i.e., a key indicator of the bonus system is beyond his control. In addition, the management team of this company is too large to the assistant production manager of one of the plants could play a prominent role in it. To improve efficiency