Compensation strategy is a core factor that plays a role in any business’s ability to be successful. Yet, it’s a topic that often takes a backseat to other, flashier aspects of a business’s growth model.
Often, when “bigger” issues arise- say you don’t hit your quarterly sales numbers, for example- we tend to tuck our compensation strategy away on a dusty shelf in the back of our minds and promise to revisit the topic when we have the time. But, that time never really comes. Maybe you make a few small tweaks and changes as you go, but eventually, you set it and forget it.
The reality is, compensation strategy goes beyond tangible benefits like salary and 401K matching. And yet, far too often companies lean on salary as their main tool to improve cultural issues like low job satisfaction, lack of motivation, and poor performance. If you’ve worked in sales or compensation for any amount of time, you already know that money alone can’t fix most things.
Don’t just take our word for it, consider this research:
- Across countries, industries, and cultures, research shows there is less than a 2% correlation between salary and job satisfaction- consistently, across the board.
- Research also suggests that other factors, like personality and perception of leadership, for example, are better indicators of job satisfaction than salary.
- Employees earning salaries in the top half of the salary range reported similar levels of job satisfaction to those employees earning salaries in the bottom half of the salary range.
So, if we know there’s less than a 2% correlation between salary and job satisfaction, what can we as revenue drivers and business leaders do to effectively incentivize and motivate our teams?
Today we answer that question and provide you with the tactics and strategies you need to boost performance, improve morale, increase productivity, and drive long-lasting motivation on your sales team.