June 14, 2024

What Are The Parameters A Company Should Follow To Motivate The Sales Force To Reach Its Quota?


Running a business organization is a challenging task for every management. Especially for the big corporates, civil factors are taken into consideration, while allotting sales quota to the salesman. To motivate the sales force, the management introduces incentives that can act as a catalyst to improve the focus and effort to meet the quota. The quota definition is similar, but different incentives are used to achieve the target. If you are a compensation administrator or a sales manager, it is frustrating and hectic to track the performance of the sales team and coordinate the periodic incentive.

The task of an incentive compensation administrator is crucial for the sales department. Effective communication helps to take strategic management decisions. Hurdles on the path of incentive compensation can reduce the level of morality and productivity. An effective compensation management system improves the salespeople’s efficiency and improves the outcome. By going through this article, you will understand the parameters that you should follow to motivate your sales force in a broader sense.

In medical devices and pharmaceutical companies, compensation management plays a vital role in the organization. And effective composition management may fit your salesforce, but there can be various challenges on the way. There are some common issues you need to understand, which can hinder the operation of the sales team. These are certain factors, which can help you to create an effective compensation management system.

Importance of accuracy:

You know that calculating incentives is very tiring and time-consuming. This is especially for products having a complex sales cycle. If the calculations of compensation are incorrect, it will harm the salesforce and reduce efficiency. So to avoid this problem, you will need the ideal key performance indicators, which can ignite the competitive spirit among the sales team and improve efficiency. There are many instances where the organization had to rely on excel spreadsheets for compensation calculation. Because this method has multiple options for error, it is more convenient to apply simple incentive compensation solutions for the task force, which will reduce the percentage of error in the calculation.

Importance of transparency in the process:

You know that framing a compensation management system is a difficult task. Due to the complexities of the process, the employees are often dubious about compensation. We know that transparency is a critical factor that helps to create a relationship between the employees and the organization. Lack of transparency can also affect communication among the various departments in the organization. Organizations maintain transparency in the process of internal and external sales, this helps to motivate the sales representative by creating respect and mutual trust.

Thus, transparency is a critical factor you should consider while creating an effective compensation plan. So, if the sales representative has a clear idea of the quota, and their performance, they can stay in the circle and understand their contribution or value to the company. If you take the necessary steps to maintain transparency in the compensation management operation, it will increase the loyalty of your sales representative and trust among the sales force. Maintaining transparency in the compensation plan is a difficult task. You need to follow a few strategies to implement transparency.

In the initial stage, you should create a quota for the entire financial year. This will help your sales representative to understand what is expected. It is advised to have a personal conversation with the sales representative about their personal goals. You know that every employee is different from others. Personal conversation clears doubt and helps them to understand the goal better with mutual agreement.

Finally, you should maintain a schedule for periodic meetings to stay up to date. A continuous feedback channel helps employees to comment from any location. Through this meeting, you can understand the problems in the sales operation and their feelings about the compensation. Necessary actions should be taken to solve the problems and issues.


With the improvement in the field of technology in corporate management, managing incentives has become easier. Information and technology have revolutionized the entire procedure of sales incentives. It makes an organization self-sufficient reduces expenditure and improves transparency in the compensation management system. Having a system-built AI system in the management helps to improve transparency in sales.

Operating the entire procedure from first to end with a press of a button simplifies the entire business operation. Effective communication helps the management to highlight the incentive programs to the sales force. It can collect data from the business operation, and assist the management to make better decisions. It can also guide the management, to develop better incentive plans.


They are different modes of communication in an organization. Here we are highlighting the communication between the different levels of management and across various domains. It is ideal to have two-way communication, which can improve the interactivity of the employees in an organization. It encourages a competitive environment in the sales domain.

Effective communication promotes two-way dialogue. There are many instances where the employees have various concerns and inquiries about the incentive system, but are unable to express them due to poor communication. Building an effective communication system improves the engagement activities among the employees and retains staff.


You have to accept the fact that human beings are not perfect, and any plans created by them cannot be perfect. Two-way communication helps the management to understand the personal goals and the ideology of the sales representative toward the incentive plan. Improving a management system requires feedback. The most reliable feedback on incentive management can be obtained from office employees. Feedback from the employees, not only means listening but also serving the entire system. The employees can also provide you with better ideas, which can provide scope for improvement.

Being a compensation administrator, you need to look from other angles to improve the incentive management system. The revenue growth is the result of a robust incentive plan. The quotas meaning is simple for the sales employees. To reach the quota the management should create an effective incentive management system.

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