Hello,
I own and manage a small company that buys products from large suppliers and sell them to shops. I have few employees (salesmen) working for me. Each employee has a set of specific customers he deals with and sells the products to.
I currently reward the employees by giving them a bonus according to the percentage of the sales of their customers. Lets say employee 1 deals with Customer A and Customer B, at the end of the year, I will check the sales of these 2 customers and calculate the bonus of employee 1 according to that.
My problem is the following:
My employees are fighting with each other to sell their customers even if it was not beneficial for the company. Lets say we have a limited amount of product and only one of the employees will sell it. The most beneficial thing to do is to sell the product to the highest bidder (customer with highest price). Unfortunately, because everyone wants to please their long-term customers and because they want to increase their bonus they are pushing the sales of their customers regarding of the price.
My question is: is my rewarding system damaging my company? How should I reward my employees instead ?
Thanks
I own and manage a small company that buys products from large suppliers and sell them to shops. I have few employees (salesmen) working for me. Each employee has a set of specific customers he deals with and sells the products to.
I currently reward the employees by giving them a bonus according to the percentage of the sales of their customers. Lets say employee 1 deals with Customer A and Customer B, at the end of the year, I will check the sales of these 2 customers and calculate the bonus of employee 1 according to that.
My problem is the following:
My employees are fighting with each other to sell their customers even if it was not beneficial for the company. Lets say we have a limited amount of product and only one of the employees will sell it. The most beneficial thing to do is to sell the product to the highest bidder (customer with highest price). Unfortunately, because everyone wants to please their long-term customers and because they want to increase their bonus they are pushing the sales of their customers regarding of the price.
My question is: is my rewarding system damaging my company? How should I reward my employees instead ?
Thanks