The Coaching Effect Blog

The Coaching Effect Blog

    Using Spot Bonuses to Engage All Employees with Sales Efforts

    by Sarah Wirth / August 8, 2013

    An EcSell member and I were discussing compensation recently.  Specifically, we were talking about how to use variable compensation and bonuses most effectively, and the member shared an interesting best practice with me.  In their organization, they use “spot bonuses” on an ad hoc basis to reward people that helped drive sales growth.  These spot bonuses are completely at the discretion of sales leadership as to when they are rewarded, to whom they are rewarded and the amount of the bonus.  Most importantly, spot bonuses are awarded to people who are not part of the sales team.

    What the EcSell member’s company has seen is that spot bonuses are highly effective in creating excitement and enthusiasm about sales throughout the entire company because now everybody is eligible for additional compensation based on improved sales results.  The bonuses reinforce the importance of sales to the entire organization, but most importantly they help give ALL employees a line of sight to how they can impact sales.  Every time a spot bonus is
    awarded, the entire company learns what that person did and how their actions eventually led to increased sales.  This constantly reinforces how each person can be integral to the growth efforts of the company.

    Sometimes the bonuses are small if the impact on sales was small and sometimes the bonuses are many thousands of dollars if the individual really created significant sales growth through their actions.  Regardless of the size of the bonus, the energy and excitement that the whole company feels when they are rewarded is always high.  People love the surprised look on the person’s face who is receiving the bonus and the stories of perseverance and resulting success that accompany it.

    So if you are trying to create excitement and engagement around sales for everybody in your organization, consider awarding some spot bonuses.  You have complete control over
    the practice since they are rewarded only at your discretion, so you can play around to see how they work most effectively in your company.  Let us know if you try spot bonuses and the
    results you see from them.

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    Also, just a little reminder!

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    Tags: Employee Engagement

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    Sarah Wirth

    Sarah Wirth

    Sarah Wirth is the President of EcSell Institute and has over 20 years of experience in employee assessment, leadership development, sales executive coaching, and customer service. She has presented to executives from across the globe with organizations such as Mercedes Benz, Estee Lauder, Ritz Carlton, Cheesecake Factory and many more.