Struggling to Motivate Sales Teams? How to Set Effective Targets and Incentives in the UAE

Hello Everyone,

I am running an IT company in the UAE dealing with IT Supplies, Hardware, Network, and Security Solutions. I have appointed a few sales executives to generate sales for the company. Therefore, I am looking forward to setting targets and providing incentives for achieving them.

I had created a sample target plan for my employees, but it did not motivate them to achieve sales. Could you please guide me on how to calculate sales targets for my sales executives along with the incentives that can motivate them?

Regards,
Kunal Sajnani

Greetings for the day ahead!!!

There are many ways of chalking out sales targets. I am going to enlist two popular ones:

1. In this method, the incentive is calculated based on the revenue target achieved. The revenue target is normally 4-5 times the salary (4-5 times in the case of junior employees such as sales executives). Revenue is the cumulative receipt from new and existing accounts. The incentive is around 10% of the revenue target achieved and payable either at the end of the month or at the end of the quarter.

Example: The salary of a sales executive is Rs. 10,000. His target would be Rs. 50,000. If he achieves revenue of Rs. 55,000, his take-home will be Rs. 15,500. If his achievement is, say, Rs. 44,000, there would be no incentive, and his take-home will be Rs. 10,000.

This is good for smaller organizations. Since the monetary incentive is paid without much delay, there is not much reliance on non-monetary incentives.

2. In the second type, everything remains the same, but the incentive is paid at the end of the year. In some organizations that use this method, a revenue target is given but is not taken into account while calculating the incentive. The incentive is based on the grading that an employee achieves, which, in turn, depends on revenue but there are other factors as well.

This is suitable for bigger organizations and requires a lot of non-monetary incentives in the transit period.

Hope it gives you some clues.

Regards,
Team GroupHR

Hi,

How do I calculate incentives for my employees based on login hours, break timings, productivity, and the number of leaves taken? Can anyone please help me out with this?

Thank you.