Setting Fair Targets for Commission-Based Staff: How Do You Approach It?

I am in the midst of goal setting for my staff. We have a few people working on a commission basis for the trade business. Can I get input on how targets can be set for these individuals?

Before setting the goals, have you trained the staff on how to attain their goals? Setting goals is easy; it does not require any effort. But how difficult is it to attain those goals, which one can understand provided one has done field visits.

Therefore, would you mind telling me how many field visits you have made? What are the challenges of the trade business? Who are your customers? What is the psychological profile of various customers? Have you developed the sales process internally? If yes, have you trained your commission agents on that process? How many times have you given them feedback on their sales calls or business calls?

Who are your commission agents? What are their qualifications? How did you assess their suitability for the work? Did you test their level of competence or IQ level before bringing them on board?

There are so many questions. The path towards the goals is laden with hurdles. Mere willpower or positive thinking is not sufficient. We need to build skills among staff on how to avoid or overcome those hurdles. This is far more important than setting the goals themselves.

Ok...

Regards,
Dinesh V Divekar

Thank you, Mr. Divekar, for your reply. The challenge I am facing here is that since these people are on a commission basis, they have their own business process. Of course, they have to submit the sales report and visit report at the end of the month (a practice started six months ago), but they are least bothered about that.

Setting Sales Targets for Commission Agents

When I am setting a specific sales target for the business, can I have a fixed target for individuals (commission agents)? Will they buy into that target? (Because they earn based on their performance and are satisfied with it.) The burning desire to achieve the target is least with them.

There are four such agents who have been working with the organization for the past 13 years and have their own way of dealing with clients. Until now, there has never been a professional approach to any activity. Goal setting is being done for the first time here, and everyone is being trained for it. However, since the agents are not on the payroll, they are least interested.

My paragraph-wise replies are given in *italics*:

The challenge I am facing here is that since these people are on a commission basis, they have their own business process. Of course, they have to submit the sales report and visit report at the end of the month (practice started six months ago), but they are least bothered about that.

*You should define the scope of the relationship based on the process that you would like to follow. No commission agent has his/her own business process. It is the company that should devise any process or sub-process. Each commission agent must adhere to the process. Submission of reports and returns at the end of the month is also a part of the larger process.*

When I am setting a specific sales target for the business, can I have a fixed target for individuals (commission agents)? Will they have buy-in for the target (because they get paid based on their performance and are satisfied with it)? The burning desire to achieve the target is least with them.

*It is difficult to get people with achievement orientation, be they your paid employees or commission agents. Nevertheless, you need to address this challenge at the time of recruitment itself. The logic is simple - do not employ an ass to get the work of a horse!*

There are four such agents who have been working with the organization for the last 13 years and have their own way of dealing with clients. Till now, there was never a professional approach for any activity. Goal setting has been done for the first time here, and everyone is trained for it. But since the agents are not on the payroll, they are least interested.

*Agents have their way of dealing with clients because your company did not make a formal process on how to deal with the clients. You say that you have trained your staff. What research was done before training? How many field visits were made, who made those visits, how were the observations recorded? Was the training supplemented with this research data? By the way, what about monitoring of the training? Who goes along with the commission agents and monitors the compliance of the training? If someone monitors, then what is the percentage of compliance and non-compliance? You will find that the higher the compliance, the higher the goal attainment.*

All the best!

Regards,
Dinesh V Divekar