Sales Performance Incentive Funding (SPIFF) is an immediate bonus given to a sales rep after they complete a sale. Sales spiffs are such a great way to reward short-term goals. Most organizations use this technique to improve some metrics and boost the performance of their businesses.
Spiffs are, however, slightly different from commissions. While commission could be a flat amount or percentage of every sale, spiffs are short-term incentives and are mostly given after the sale to motivate the employee.
Types of Spiff programs
Spiffs can be broadly categorized into cash and non-cash incentives. As a company, you can apply any type depending on your budget and company’s goals.
This involves compensating the sales rep with benefits in the form of money. It’s a flexible spiff scheme and gives the employee a chance to spend their money on whatever they like.
More than 80% of the organizations in the United States motivate their employees using non-cash rewards. It could be in the form of prizes, vacations, and recognition. Below is a list of non-cash spiffs that can get your team hyped up to win:
1. Gift Cards
This is a common sales spiffs reward in many organizations. While some people classify them as cash spiffs, some employers give their employees gift cards according to their preference. Partnering with other businesses can also get you gift cards at a much cheaper cost. It becomes a win-win for both you and your staff.
2. Power and Responsibilities
You can reward the best performers with power and more responsibilities in the organization. Through this, the rest of the team members will learn from their colleague’s success. A good example is asking the star performers to train the newbies and improve their sales strategy.
3. Amazing Gifts
Many employees will often appreciate gifts once in a while, especially after an outstanding performance. You can offer products to your sales reps as sales spiffs if you’re running a manufacturing business. You can otherwise buy your workers gifts for meeting and exceeding targets.
4. Memberships and Subscriptions
Membership programs can be diverse, ranging from book clubs to gym subscriptions, among other things. You can even introduce exciting subscriptions such as food delivery and online shopping. These privileges will encourage your staff to pursue their hobbies besides a regular work routine.
5. Offsite Activities
You can take your employees to the spa, golf, or team-building activities outside the workplace. Be sure to ask them what they will enjoy and plan accordingly. While at this, consider a number of options as not everyone will be fascinated by the same thing.
6. Travel and Vacation
With bills to pay, only a handful of employees can afford to spend on travel, entertainment, and vacation. They are, however, willing to travel and have fun if given a chance. You can give them tickets to events, movies and sports shows or short vacations as a spiff program. They will get a fulfilling break from work that will enhance their performance.
Sales spiffs can be a great way to motivate employees who achieve or surpass targets. These incentives, however, vary according to the company and its workers. It is crucial to discuss with your sales rep to help you narrow it down to a spiff program that will excite them.