How should I determine raises for salaried salespeople?

Monday, May 11th, 2009

Dear Norm,
I know that you pay salespeople by salary, rather than commission. My question is, how do you decide on raises? I suspect you must use subjective criteria. If you based raises only on objective sales results, it seems as though you’d undermine the team concept you’re striving for.
Robert

Dear Robert,
You’re right. Part of it is subjective. I look at overall company results and at individual performance, but most important to me is the way they work as members of a team. I want to see people helping each other, not competing. I’ll give you an example. One of our salespeople, Patti, had to go out of town and asked another salesperson, David, to attend a meeting with a big account she’d been trying to land for months. When David showed up, there were six people waiting who said they were making the final decision that day. He closed the account, and I give him full credit for that, but I also give three stars to Patti for being able to say, “Okay, I trust the people I work with to cover for me.”
Yours truly, Norm

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