Formula for calculating the salary of a sales manager: expert opinions.

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

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Salaries are calculated according to a specific 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 expecting the promised payment based on the results of their work.

One of such systems is the bonus system, 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 earnings depends on the productivity of staff. Characterized by the ability to increase remuneration through ability to work 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 good remuneration is due. Otherwise - an 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 hard work of employees, to identify unscrupulous individuals who do not want to work at full capacity;
• allows you to fulfill monthly production and sales plans, increase the profitability and income of the company;
• prevents conflict situations among staff that arise due to a lack of coordinated work;
• eliminates taxation on large amounts (income tax is deducted only from the salary portion);
• employers have the opportunity to reduce costs for sick leave, vacation pay, and maternity leave.

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

The bonus system is used primarily in trading and insurance. The legislation of the Russian Federation does not approve of 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 given at all.

Therefore, most companies that practice a bonus system always need workers and easily accept everyone, regardless of age, education, or employment status.

Initially, the bonus system in the service sector was earnings through the “imposition” method.

Workers had to sell goods by any means, offer them to various groups of people, and talk about the non-existent advantages of products.

By selling one item, you could receive a certain percentage of the proceeds. This is how the bonus system was born, which is actively used by modern businessmen.

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

Let's look at an example of the simplest way to calculate wages. In company "N" the rate per unit of goods sold is 2 rubles.

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

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

Another option is possible. A bonus 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 fulfilled, then the bonus is not 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 the company's efficiency improves, an additional bonus is paid. All employed persons will agree to work under such conditions if the cost of their services is higher than the minimum values.

Bonus system of remuneration for sales managers

Sales managers are the most common profession in the bonus payment industry. The salary of such employees depends directly on the work performed, or more precisely, on the clients attracted and products sold.

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

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

The company's profit 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 only be motivated to work productively.

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

Advantages and disadvantages

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

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

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

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

Let's consider the disadvantages:

As for the employer, the bonus system has only positive aspects. The company is not responsible for paying the bonus; bonuses can be issued periodically.

What formula should be used when calculating the salary of a sales manager so that his motivation constantly grows, and at the same time there is no dissatisfaction among employees? Is it worth using coefficients for length of service in a company? Business.ru experts share their experience.

Expert opinions on calculating salaries for 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 the flexibility of KPIs. For example, if a certain product is lying in a warehouse and needs to be sold, a motivational scheme should be made so that the seller wants (it is profitable for himself) to sell this product.

For example: when the sales plan is fulfilled - such and such a percentage, when the plan is fulfilled according to certain models - an increasing coefficient.

The second point is 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 fulfillment of the sales plan by his department; there must 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 - an increasing coefficient.

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

The Business.Ru CRM system will allow you to fully control the sales department, calculate salaries for managers, manage relationships with clients, conduct productive work with leads, and also increase the efficiency of employees.

There is also a good profit from selling cross-products or services, and the seller should not neglect this fact. You can also add an increase in rewards 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 the implementation of your own plan, plus an increasing factor (for example, 1.5) for the department’s complete implementation of the plan, plus a percentage of the profit from the sale of additional services and a general increasing factor of 0.5 to the entire amount for a high rating for customer satisfaction.

It is only important for the manager to understand that the motivation system must be transparent (understandable to the seller) and simple to calculate, so that the seller understands how his salary is calculated. But at the same time, you shouldn’t simplify it too much.

For example, set a plan for selling such and such a quantity of goods, and that’s it. This is rather a demotivator, since the seller will aim to fulfill this particular plan, fulfill it, and then sit quietly and wait for the end of the month.

Is it necessary or useful for business? The motivation system should motivate, stimulate the seller, force him to 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 manager’s salary 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 fulfilling the company's general plan (15%).
4. Premium for the plan based on the number of primary clients (31%).
5. Award “for the absence of complaints from clients” (9%).

For example, the fixed part is 8,000 rubles. Prize “for the absence of jambs” - 2,000 rubles. These are immutable quantities. In fact, this is the minimum that a manager can count on for 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 100% complete, the manager will receive + 5,000 rubles. If the plan is 80% fulfilled, that is, the revenue was 1.6 million rubles, then the manager will receive 80% of 5,000 rubles, that is, 4,000 rubles.

This system allows you to motivate the manager to sell more (initial orders) and re-sell to existing customers (bonus for the company’s turnover plan).

Timur Lavronov, PR Director, Vertex:

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

For example, you cannot change employee motivation at your discretion. The manager says: “I want to pay a bonus for fulfilling the plan, give me a doubling of the plan.” Dear owner! It is impossible to double the plan while maintaining the “bonus for fulfilling the plan” motivation. 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 greater the commission he will receive. If, for example, a manager sold 1 million rubles worth of goods per month, then he receives 5% of the proceeds. If you sold for 1.2 million rubles, then from a part of this amount of 1 million rubles. he will also receive 5%, and from 200 thousand rubles. he already receives 7% of the revenue.

And if the manager sold for 1.5 million rubles, then the commission from this amount is broken down as follows: from 1 million rubles. - 5%, from 200 thousand rubles. - 7%, and from 300 thousand rubles. - 10%. Here you can use a smoother formula, not necessarily step-by-step. You can also use a linear relationship between the minimum and maximum percentage that the manager receives.

The more you sell, the greater the commission on the total amount. Such financial motivation helps the manager sell as much as possible. This 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.

There is no “percentage of net profit” - this is all a lie that the manager will not believe. He doesn’t see your net profit, because net profit is calculated minus your salary, you won’t tell anyone your salary, as a director, you won’t tell anyone all your office expenses, and so on. Therefore, it is calculated from revenue or gross profit.

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

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

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

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

In this case, it is wise to use the planned bonus system. At the same time, set a smaller plan for a novice manager, and a larger one 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.

Firstly, because the manager does not trust the fairness of how you set the plan. The fact is that achieving the plan will determine whether he receives his bonus or not. If the plan is too high, there is a high probability that the manager will not receive the bonus. Secondly, managers do not agree with the fact that they are given different plans.

For example, one has been working for five years and his plan is 5 million rubles. Another employee works for a year and for him the plan is 1.5 million rubles. At the same time, they receive the same salary and bonus. An experienced employee's dissatisfaction 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, or account manager.

If you do not have the opportunity to set a plan and standard, yes, there is a certain plan that will suit your CEO, but can you at your own discretion determine the plan between employees? Distribute this plan among different products? Regions? Departments? No, you can’t - okay, your legs are also shackled.

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

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

The CRM system for a store from Business.Ru allows you to control the working hours of sellers and record the opening and closing of the store. A special event log will allow you to 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 bears fruit. “Employee Karma” is a kind of virtual account, flexible and understandable. If an employee’s KPI is higher, then his karma increases.

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

Or, partly with the help of the financial component, but within one direction, for example, sales. The motivation of all employees must increase. Ultimately, each of them contributes to one common big cause.

Svetlana Makarova, director, Makarova S.A.:

A sales manager is an achiever, so when developing a universal salary calculation formula, it is important to pay attention to the motivational part. A manager cannot receive only a salary - this is a mandatory condition 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/premiums from sales. Stinginess 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 down the fixed salary portion, which the manager will receive under any conditions. The second component of income is bonuses, which should not have a “ceiling”. As much as I earned, I received as much. Simply put, we allocate a percentage that we are willing to pay from the sale of each company product.

The manager should receive this percentage by default, so he will understand that he can increase his income. However, it must be taken into account that a sales manager is a rather fickle workforce, therefore a salary + sales bonus is not a panacea for retaining and developing an employee.

Therefore, let's add additional motivation to this formula, which will become a catalyst for increasing sales volumes for the entire department. This way the company will get maximum results, 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 sales bonus by 5, 10 and 25%, therefore, if sales volume is exceeded by 25, 50 and 70%:

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

And as a final touch, we set several targets - 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% and will understand how much he can earn and what he needs for this.

You can also easily separate the wheat from the chaff, since an employee who is not focused on results, compared to colleagues who earn several times more, will either begin to take active action, or the company will be able to systematically replace personnel 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 on staff will demotivate his colleagues!

Read articles about organizing the work of a sales manager:

How effective do you think the remuneration scheme for sales managers still used in many companies is: salary + % of sales volume?

There are clear advantages of using this approach: simplicity, transparency and clarity for employees, motivation for sales growth.

However, this reward system has a number of disadvantages:

1. in this case, we stimulate them only to increase personal sales (there is no collective indicator), and then such a remuneration scheme supports individualism and does not motivate them to provide support to colleagues, mutual assistance, etc.;
2. we pay for any sales volume, which may even be lower than the profitability for the business;
3. the incentive system is aimed only at increasing sales volumes, without motivating employees to improve the quality of service, increase the number of new clients, etc. A manager can create a client base, and then “sit” on it, serving regular clients, i.e. actually performing not a managerial, but an operator function;
4. volumes can grow due to the reaction of the market (and not the efforts of the manager), and the company, fulfilling its obligations, will be forced to pay an unreasonable (from the point of view of common sense and the market) variable part of the salary.

Let's consider another option.
We can reward not only for sales volume by introducing several coefficients:
salary +% of sales volume +% of sales volume for new clients +% of reduction in accounts receivable

With this approach, you can already change the indicators depending on your goals.
You can use, for example, the following formula:
salary + K1 x sales volume + K2 x number of new clients attracted + K3 x X,
where K1, K2, K3 are the calculated coefficients;
X - may be: gross margin, return on sales, reduction of accounts receivable (but sometimes these indicators are not needed if your goal, for example, is to conquer the market or increase its share);
+ bonus for quality of service or absence of complaints from clients.

You can also change the indicators depending on your goals, and their weight, i.e. significance for the company, reflected in the coefficients.
Advantages of using this approach:

• incentives to achieve a number of indicators important for the company and their balance
• flexibility (you can change indicators and weight depending on your goals and importance for the company
• stimulation of active sales
• transparency, understandability
• the absence of a limitation on the wage fund is important if you want to make a breakthrough in sales, or enter a new market, another region, that is, when there is a need to stimulate active sales.

But the disadvantage of this approach is that you pay for any sales volumes, even below the profitability for the business, and there are also risks of inflating the payroll - wage fund in the event of an unexpected increase in demand in the market or its inaccurate assessment, for example, when entering a new market) .

You can get acquainted with other options for reward systems used by companies completely free of charge by subscribing to my newsletter on the website www.seminar.sky.ru

In my opinion, the most effective "Building a remuneration system based on KPIs - key performance indicators".
The advantage of such a remuneration system is its transparency, clarity (each manager can calculate his performance, and therefore the size of the bonus), flexibility, dynamism: when the strategy (situation) changes, you can change goals, KPIs and weight, but the remuneration mechanism will remain the same same. I will briefly discuss the algorithm for developing goal matrices and KPIs.

Algorithm for developing goal matrices and KPIs.
Developing goal matrices and KPIs involves six main steps:

1. Defining the company's goals in accordance with the SMART principle.
   It is important to check to what extent all established goals comply with the SMART principle - only in this case the system will be effective: unattainable goals lead to demotivation of employees, the implementation of immeasurable goals is most likely assessed subjectively by the manager, etc.
2. Decomposition of goals to the level of divisions, departments, employees.
   One of the most common mistakes is the appearance of company goals in the employee matrix. This means that the decomposition of the goals was not carried out.
3. Development of KPIs for each goal.
   Based on the decomposition of the company's goals, goals and KPIs are determined specifically for each manager and employee. One goal can have two indicators. KPI determines the degree to which the goal is achieved. Particular attention should be paid to the alignment of company goals and indicators. Building a goal table. Determination of weight. A table of goals is created for a specific employee. KPIs and weight for each goal are determined. The more important and significant a goal is for a particular company in a given period of time, the more weight is given to it (the total weight of all goals is 100%). You can also take into account the difficulty of achieving the goal.
4. Determination of planned values ​​of indicators.
   To set a target, statistics or dynamics of the company's performance for the previous period are needed. If such indicators have not been calculated, then first you should collect information for statistics (this is especially important for companies whose activities are characterized by seasonality), analyze market development and the availability of resources (for example, production capacity) and only then set real targets. Overestimated values ​​of planned indicators lead to demotivation and staff resistance, underestimated values ​​lead to biased high bonuses.
5. Development of performance criteria or formula for calculating performance.
   The following formula for calculating goal achievement is recommended:
   Execution i = Fact i / Plan i, where execution i = fulfillment of the i -th goal
   The goal result is calculated as the product of goal completion and the weight of this goal:
   Result i = weight of goal i x execution of i, where result i = result for the i-th goal
6. A relationship between performance and employee remuneration is established.
   The result of each goal is determined. The results for each goal are summed up to produce a value for the employee's overall performance, which is linked to the employee's remuneration.

For example, consider the table of goals and KPIs of the head of the sales department (see Table 1).

Table 1. Table of goals for the head of the sales department

	3-5 main goals		Weight, %	Plan	Fact	Result
	Increase gross margin	Gross Margin
	Increase volume	Revenue from implementation
	Increase volume sales on new clients	Sales volume by new clients
	Promote satisfaction external client	CSI - index satisfaction external client

Table 2 shows the relationship between performance and remuneration as a percentage of salary.

Table 2. Remuneration amount.

Based on the table, it can be determined that if the sales manager’s performance is 95%, then his percentage of the salary is 80%.

An example of calculating the CSI - customer satisfaction index is given by me in my mini-book “Increasing the efficiency of the sales department” http://www.seminar.sky.ru/minikniga.htm

After gaining some experience, you can use the approach of constructing goal matrices with values ​​​​by level: unacceptable, planned and leadership. Moreover, if a sales manager works below an unacceptable level, then his bonus tends to zero.

In some trading companies, there is a need to divide sales managers into those who serve an already permanent client base (they can be paid a variable part of the salary as a percentage of the salary, while the constant part of the salary may be larger, but in general the salary is lower than that of those who), and those who work “in the field”, i.e. is looking for new clients. At the same time, the permanent part of the salary for office account managers may be larger than for managers involved in active sales, but the entire salary is generally less.

Quite often, Russian companies limit themselves to remunerating sales managers for achieving individual results. In addition, at the end of the year, the results are summed up and the best seller is determined, who is awarded a trip to an exotic country.

However, let us ask ourselves: what is this stimulation aimed at? Most likely, to encourage individualists who do not want to share experience, knowledge and skills with colleagues. What for? If a manager passes on his experience or teaches a colleague how to properly build relationships with clients, then he may lose leadership in sales, which means he will not receive not only recognition, which, of course, is also valuable, but also a vacation package. Therefore, in addition to paying compensation for individual contribution, we must incentivize the sales manager to achieve collective results, i.e. to achieve the goals of the entire department (if, of course, such an approach has a positive effect on the results of the entire department).

Which ratio to use - 80:20 or 60:40, depends on the specifics of the company and the situation in the sales department. For example, if there are three strong and seven weak managers in a department, you apply the 60:40 option, it turns out that the first will receive their 60%, but will always receive 30-40% less due to the failure of the entire department to fulfill the plan (the reason for this is a large number of weak sellers).
And what will happen in this case? Most likely, strong managers will consider this situation unfair and quit. You will lose good specialists. Here is the result of a thoughtless, “stupid” application of a seemingly effective system.

Do you agree with my recommendations above? In your opinion, what is the most effective approach to remuneration for sales managers? Write: seminar@sky.ru
Elena Vetluzhskikh, Business coach, consultant on remuneration systems.
www.seminar.sky.ru

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The previous part of the article1 covered the initial stages of developing a remuneration system for sales department employees: choosing the period and type of bonuses, determining the factors influencing the share of the variable part of wages. Next, we will talk about establishing bonus indicators and the relationship between them and the size of the bonus.

Stage 4. Establishing bonus indicators

This stage involves choosing bonus indicators. The project manager for developing a bonus system needs to involve the company's top management and heads of sales departments, who will act as experts.

The indicators should reflect the company's sales strategy. Typically, no more than four indicators are set for an ordinary employee and no more than five for the head of a department or group (Table 1).

After selecting bonus indicators, it is necessary to set achievement levels for them, which reflect the degree of fulfillment of the established goal (plan).

In practice, both plans with indicators that have only a target (planned) value are used, as well as plans in which several levels of achieving the indicator are established: target or planned, minimum or threshold and maximum.

The target level corresponds to the value of the indicator that, under normal conditions, is achieved (and/or exceeded) by two thirds of the sales department employees. The target value must be realistic but challenging.

For determining The target level should be analyzed by statistics of sales results for years during which there were no significant changes in the external and internal environment of the company (for example, changes in product characteristics, the emergence of a new competitor, etc.).

The maximum level usually characterizes the maximum performance that the company is willing to pay at the highest bonus rate. This reduces the risk of excessive premium amounts in the event that an unexpected change in the market causes a sharp increase in sales performance. This level usually does not exceed 10% of the total number of employees. The percentage of bonuses paid for maximum performance and achievements above the maximum level is called the “ceiling”.

The minimum reflects the value of the bonus indicator, which is the minimum required threshold to receive any bonus amount. In this case, the company encourages employees to achieve a certain threshold value of the indicator and does not pay bonuses for any achievements below the established minimum level.

Performance levels are established based on the expert opinion of management, statistical analysis of data on past sales results, future forecasts and benchmarking.

Stage 5. Determining the conditions for calculating sales performance

This stage of the project is one of the most difficult: it requires establishing a relationship between bonus indicators and the size of the bonus. The motivation of sales department employees depends on how accurately this dependence reflects the relationship between employee performance and their remuneration.

The following options can be distinguished for the dependence of the bonus percentage on the achieved value of the bonus indicator. 1. Fixed rate. The percentage of the bonus for achieving the indicator is a constant.

Example

Upon reaching a sales volume of 6 million rubles, an employee of the sales department receives a bonus in the amount of 1.5% of what was achieved. When the sales volume reaches 10 million rubles, the percentage of the employee’s bonus remains the same.

This is the simplest and most commonly used type of dependency (Fig. 1). It is understandable to the employee and stimulates him to improve his performance.

2. Variable rate, increasing in progression. The percentage of the bonus for fulfilling the indicator changes: it increases when the specified value of the bonus indicator is reached (Fig. 2).

Example

For sales volumes up to 6 million rubles inclusive, the employee will receive a bonus in the amount of 1.5% of what was sold, and if the sales volume exceeds 6 million rubles, the bonus amount will be 3% of what was achieved.

This option encourages the employee to exceed the plan.

3. Variable rate, increasing regressively. The percentage of the bonus for achieving the indicator changes: it decreases when the specified value of the bonus indicator is reached (Fig. 3).

Example

For example, for a sales volume of up to 6 million rubles inclusive, an employee receives a bonus in the amount of 2% of what was sold, and when a sales volume exceeds 6 million rubles, the bonus amount will already be 1% of what was achieved.

This option encourages the employee to achieve the target value and allows you to limit the amount of payments in case of unplanned exceeding of the task by several times. Rarely used, usually when there is a shortage of goods or production capacity.

4. Interrelated indicators.

In this option, the size of the bonus is made dependent on the achievement of related indicators. Such a comprehensive plan allows employees to be oriented toward effective work in various areas of activity.

Trigger model. To pay a bonus for indicator X, an employee must reach a certain level of indicator Y. That is, the bonus plan is triggered only if indicator Y is “launched,” which is why the model got its name. For example, an employee will receive a bonus for selling a product only if the degree of customer satisfaction with his work according to the survey results is at least 75%.

"Multiplier" model. Unlike the “Trigger” model, it is provided here that upon reaching a given level of indicator Y, the employee not only receives a bonus for indicator X, but also the size of the bonus in this case increases or decreases by a certain coefficient or percentage (multiplier). For example, when the target level of marginal profit is achieved, the size of the bonus for the “sales volume” indicator doubles. This allows you to motivate the employee to fulfill both indicators.

Model "Matrix". To receive a bonus, an employee is expected to achieve two competing goals, for example, retaining existing customers and attracting new ones. For this purpose, a matrix is ​​used, which indicates the size of the bonus as a percentage for achieving each of the indicators (Table 2). The coefficients located at the intersection of the rows and columns of the table show the multiplier that is applied to the planned bonus value depending on the achieved level of indicators. For example, an employee of the sales department fulfilled the plan for attracting new clients by 100% within a month, but the loyalty of existing clients decreased and amounted to 70% of the plan. Thus, he is entitled to 0.9 of the planned bonus.

KPI model. It involves the establishment of several bonus indicators with different weights. Allows you to stimulate an employee to perform a number of tasks related to the strategic goals of the company (Table 3).

5. Combined model (combination of the previously listed). One bonus plan can use indicators with different options for depending bonus payments on achieving bonus indicators (Fig. 4).

For example, an employee receives quarterly 5% of the volume of goods sold, as well as a bonus for meeting two KPI indicators in the amount of 30% of the salary (planned level).

Stage 6. Final

At the final stage of developing a bonus scheme, it is necessary to determine the conditions for calculating sales performance, otherwise employees will have questions like: when to consider a product sold (when the money has been received from the client, or when an agreement has been reached, or when the product has been shipped to the client, but the money has not yet been credited to the company’s account) received)? To avoid such discrepancies, first of all, you should determine the fact of the sale and the rule for attributing the results of the sale to a specific specialist in the sales department.

The fact of a sale can be established at the moment when:

• the company accepted the order;
• the goods are shipped to the client from the warehouse;
• the goods are shipped from the client;
• an invoice has been issued to the client;
• the client paid the invoice;
• an agreement on a transaction has been reached;
• a combination of the above occurs.

The sales result relates to the employee who:

• made a deal;
• reached agreements;
• issued an invoice;
• maintains the account of this client;
• accepted the order.

Also, the sales result can be attributed to several employees who contributed to the result in equal proportions (100% or less than 100%), or in proportion to the contribution of each of them to the result.

Finally, it is necessary to test the bonus plan to ensure the relevance of the established parameters. Testing is carried out on the basis of available statistical data on sales and employee compensation levels over a number of years, as well as by forecasting employee performance and earnings in future periods. During testing, the following elements are typically simulated and evaluated.

Distribution of bonus payments between employees (regions, service accounts, etc.). To do this, a graph is constructed reflecting the number of employees (regions, accounts, etc.) with a certain bonus level. In this way, it is revealed whether there is a imbalance in the level of payments, for example, when the majority of employees receive a bonus below the planned level.

Level of achievement of target bonus indicator.

A graph is drawn up of the dependence of the number of employees on the percentage of achievement of the planned bonus indicator. Using such a schedule, the probability of achieving the goal by the planned number of employees (usually two thirds) is determined.

The amount of employee wages before and after the implementation of the bonus plan. It is advisable to avoid loss of income, as well as excessively large premium payments compared to previous periods. Projected income can also be compared to market wage levels.

Costs of bonuses for employees upon achievement of each level of bonus indicators. It is necessary that the cost of paying the bonus corresponds to the amount budgeted.

If, during testing of the bonus plan, a discrepancy is revealed between the specified parameters and the planned level of employee bonuses, then appropriate changes will need to be made to the developed bonus scheme and tested again.

Case studies

Let's look at examples of variable remuneration systems for sales department employees occupying different positions.

Key account manager bonus plan. The goal is to sell the product to key customers and introduce a new product to the market. The employee receives part of the bonus monthly for fulfilling the sales plan for an existing product. (Table 4). The second part of the bonus payments is a monthly bonus for the sale of a new product (Table 5).

Premium plan for wholesale sales manager.

The goal is to sell the product to new and existing customers. The employee receives a monthly commission on product sales. The bonus amount also depends on the customer satisfaction indicator, which acts as a multiplier (Table 6). The multiplier is determined according to the scheme (Table 7).

Thus, there are many options for bonus schemes for sales employees. The key to making the right choice is taking into account the company’s strategic plans, the specifics of the sales process and products sold, as well as a thorough economic and statistical analysis of data on sales and wage levels for the category of employees in question over a number of years.

What to choose: carrot or stick? How to get managers to work at 110%? There is no single correct answer to these questions. Everyone has their own recipes for success.

We invite you to familiarize yourself with the experience of a company from the wholesale trade sector, which skillfully uses material motivation and provides such bonus for sales managers, which inspires them to increase sales.

*Template provided on condition of anonymity (the company's field of activity is wholesale and small wholesale of chemical industry goods).

Best article of the month

If you do everything yourself, employees will not learn how to work. Subordinates will not immediately cope with the tasks that you delegate, but without delegation you are doomed to time trouble.

We have published in this article a delegation algorithm that will help you free yourself from routine and stop working around the clock. You will learn who can and cannot be entrusted with work, how to correctly assign a task so that it is completed, and how to supervise staff.

Which sales managers should pay bonuses?

At the Alpha company, the salary of sales managers consists of two parts: fixed and variable.

Fixed part- a salary that is guaranteed to be paid to an employee monthly for performing the duties provided for in the employment contract. Salary is determined according to the staffing table and taking into account the actual time worked. The salary amount is established by order of the General Director.

Variable part- bonuses that are given to the manager to increase motivation and interest in the final result. Incentives are paid individually based on KPIs. We use three types of bonuses for sales managers:

• for fulfilling the sales plan at the end of the month;
• for timely completion of tasks;
• for fulfilling the plan at the end of the year.

Plans based on the results of the month and year are formed on the basis of indicators, each of which has a specific weight. If according to one of the parameters the plan is fulfilled by less than 60%, no bonus is awarded for it.

• How to find the ideal sales manager: a three-stage interview
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How to calculate a monthly bonus for a sales manager

Every month on the 28th, the head of the sales department creates KPIs for the next month for each manager, focusing on the approved sales plan. No later than the first day of the reporting month, the document is signed by the commercial and general directors of the company.

The actual monthly bonus that the sales manager will receive is calculated using the formula:

Фп = Бп × ki,

where Bp is the base bonus provided for by the KPI;

ki is the KPI performance coefficient.

The execution rate is calculated using the formula:

ki = actual KPI / planned KPI × 100%.

Let’s assume that the monthly bonus for a sales manager’s KPI is 60 thousand rubles. Each employee works with ten regular clients who cannot be lost. If two customers do not place an order this month, then the share of the indicator “retention of regular customers” will be 20%. In this case, the sales manager’s bonus is 12 thousand rubles. (15,000 – 15,000 × 20%). If more than 40% of customers are missed, you will not receive a bonus based on the indicator. If this happens twice, the head of the sales department will sort out the situation with the sales team, pointing out errors. If this happens two more times, they will say goodbye to the seller.

Sales is obliged no later than the 22nd day of each month to transmit to the purchasing and logistics department information about pre-orders and the planned volume of sales of goods for the next month. If the volume is calculated incorrectly and this leads to a shortage of products or a surplus that exceeds the need for goods by 40%, a bonus for the indicator is not awarded. For example, the manager calculated that next month he would sell 1 thousand units of products, but sold only 500. At the same time, on average, 600 units of popular goods are sold per month. This means that the company purchased surplus, which it is forced to store in a warehouse. The manager did not fulfill the plan. All indicators are calculated in the same way.

At the end of the month, the manager will receive 47 thousand rubles: 60,000 × (47,000/60,000 × 100%).

• Motivation of sales managers: advice from professionals

How to calculate a sales manager's bonus at the end of the year

No later than January 25, we award an annual bonus to managers who have completed the probationary period (three months) and are enrolled on staff. The incentive amount is calculated on the same principle as the monthly bonus amount. However, the year-end bonus for sales managers includes new indicators.



The annual KPI is set by the head of the sales department, having agreed on the indicators with the commercial director. The document is then signed by the General Director.

Is it possible to revise KPIs?

The established KPI changes after approval, provided that the manager did not fulfill the plan due to unpredictable or force majeure situations that he could not influence. Let's say it is impossible to supply some foreign-made ingredients due to sanctions. In this case, the current situation must be documented (for example, provide screenshots of correspondence with the supplier by e-mail).

The share of indicators in the sales manager’s total bonus can be revised if the market situation changes. To make changes, the head of the sales department writes a memo and coordinates the innovations with the commercial and general directors. This must be done no later than the first day of the month from which changes are planned.

No later than the 6th day of each month, the head of the sales department submits the actual figures for the previous month to the commercial director for review and approval. No later than the eighth, the accounting department calculates salaries.

Sales manager bonus for timeliness

Before the start of each month, the head of the sales department draws up a task plan for the month, which is agreed upon with the commercial director. If managers complete monthly tasks on time, they receive a fixed bonus of 7 thousand rubles. If a task is not completed on time, it is postponed to the next month, but 4 thousand rubles are due for completion. If the manager fails to complete the task a second time, no timely bonus is paid. At the same time, the sales manager’s bonuses per month are reduced by 2 thousand rubles. If the salesperson fails to complete the assigned tasks two times in a row, the fine increases to 10 thousand rubles. The punishment system keeps newcomers on their toes and helps them set priorities correctly.

• Monitoring the work of sales managers: how not to miss important details

Bonus to sales manager for loyalty and performance

To motivate sales staff to work for results, at the end of each year we give away a trip to hot countries. To receive such an incentive, a sales manager must meet three criteria:

• have worked for the company for at least one and a half years;
• complete tasks in a timely manner (one mistake is allowed);
• fulfill the monthly plan by at least 80%, and the annual plan by 70%.

They gave vouchers even during a crisis. At the same time, the company does not choose cheap destinations. Otherwise, employees will feel that they are being skimped on and will not strive for high results. In 2014, a sales manager who worked for us for three years was given a trip to Spain for the whole family as a bonus and bonus. That year, the seller attracted three major clients who helped the company get out of the crisis.