Motivating the Sales Force: Theories and Strategies

Introduction

Motivating the sales force is often based on providing rewards tied to performance, and this is an important motivational tool. At the same time, it must be recognized that for this to be effective, other needs must first be met. To investigate this idea further, several motivational theories will be described and applied to the sales force. This will be followed by a discussion of how a sales force can best be motivated and what factors need to be present for maximum motivation.

Maslow's Hierarchy of Needs Applied to Sales

The first motivational theory to be considered is Maslow's hierarchy of needs. This theory states that there are five levels of needs through which an individual progresses. The first level is physiological needs, which refers to the basic need for food and shelter. The second level is safety needs, which includes having job security. The third level is belongingness needs, which refers to an individual's need to feel like they are part of something and that their contribution is important. The fourth level is esteem, which refers to an individual's need to feel good about themselves, including feeling that their work is appreciated. The fifth and final level is self-actualization, which refers to the individual feeling that they are being the best they can be.^[1]

This final level represents the individual at their most motivated. At this point, the employee works to be the best they can be while feeling maximum satisfaction and while also feeling that their contribution is valued. The important thing about the hierarchy is that individuals cannot achieve any stage without first progressing through the earlier stages. Therefore, an employee cannot reach the self-actualization stage if their physiological, safety, belongingness, and esteem needs have not first been met. This means the organization must ensure every level of need is provided for.

Relating this hierarchy to the sales force, it can be considered how each need can be met. The first level is physiological needs — the need for food and basic sustenance. To provide for this need, the organization must ensure that the sales force is adequately compensated. This is the reason that commission-only employees often lack motivation: while they need to make sales just to meet their physiological needs, they are not able to progress to any higher level of motivation.

The next stage is safety needs. For the sales force, this relates to job security and the assurance that basic needs will be consistently provided for. This is another reason why commission-only systems are problematic — they do not allow employees to feel safe and secure in their positions.

The third stage is belongingness needs, which refers to an employee's need to feel part of a team. For the sales force, this means ensuring that employees understand their role in the organization and how they fit within it. It also means creating an environment where employees feel like part of a team. One aspect that can undermine this within a sales force is competition between members. To prevent this, rewards need to be given not just on an individual basis but also on a team basis.

The fourth stage is esteem needs — the employee's need to feel good about themselves. To achieve this, employees need to be praised for their efforts. This praise could take the form of a monetary reward, a formal award, or even a simple thank you. The final stage is self-actualization. This stage is reached when all other needs have been met. At this stage, employees work for themselves as much as for the company; they desire to achieve goals because those goals matter to them personally. This represents the maximum motivation achievable, based on the fact that all individuals will ultimately value themselves more than any external reward.

ERG Theory and Sales Force Motivation

A closely related framework is ERG theory, which describes three levels of motivation: existence needs, relatedness needs, and growth needs. The first level — existence needs — is similar to Maslow's first two stages, encompassing the individual's need to live adequately. For the sales force, this means paying staff adequately and providing job security so they know their basic needs will be met. The second level is relatedness needs, which is the need to feel part of a group. To achieve this, the organization must create a work environment in which employees feel connected to something larger than themselves. The final level is growth needs, which refers to an employee's need to feel they are developing and progressing. For the sales staff, this could involve training programs to increase employees' skills, promotional pathways aimed at higher roles, or skill-sharing programs that broaden an employee's capabilities.

Herzberg's two-factor theory states that there are two types of factors: hygiene factors and motivators. Hygiene factors do not motivate employees but will demotivate them if absent. Motivators are the factors that actually increase motivation. Importantly, employees will not be motivated unless the hygiene factors are first in place. These hygiene factors include pay, security, company policies, and interpersonal relationships.

Conclusion

Overall, motivating a sales force requires a combination of factors. First, the basic needs of employees must be addressed to ensure they are not demotivated. This involves providing adequate pay and job security. Employees then need their belongingness needs met through full involvement in the organization and the creation of a team-based work environment. Reward and incentive schemes built around team performance then motivate employees while guarding against a destructive competitive culture. Finally, employees must be recognized for their individual achievements through feedback and praise. When these factors are combined, the result is a sales force operating at its maximum level of motivation.