National Sales Center

 

Sales Performance Review Evaluation Issues

Yes, we need Sales Performance Evaluations but we also need to get them right. Unfortunately, that’s not happening in many large corporations. Let’s look at some of the issues concerning sales performance evaluations and how we can improve the process.

But first, allow me to issue my full disclaimer that you should consider this entire  article  pure  folly  so don’t use anything in this article at your office or work. If you do, you do so at your own risk so don’t come knocking on my door.

 

The Easy Part May Not Be That Easy

Did you achieve quota? On the surface, that’s the easy part of sales performance evaluations but a few words of caution. Achieving quota is only one part of a sales rep’s responsibilities, granted, an all-important one. Since these performance evaluations cover all responsibilities, it is important to give them a weight. You may elect to assign a 75% weight factor on achieving quota. However, if your reps also maintain accounts, achieving quota may receive a 55% to 60% weight.

I also caution you be careful about quota assignments. Are you overloading a “Protected Group”? Often, senior reps get the highest quotas, justified by assigning them to top accounts. However, you could face a major problem if your older reps are carrying much higher quotas than younger reps.

 

 

Performance Evaluations And Job Descriptions

For many reasons, large corporations need standard processes to measure and evaluate reps across the nation and around the world. Enter H.R.’s “Job Description”. The problem with H.R.’s job description is that it is often missing quantity benchmarks. For example, their job description may say, “prospect for new accounts” but never mention how many new account appointments a rep is required to attend each week or month.

There are two sides to this coin. First, it’s good that H.R. leaves room for sales managers to develop quantitative expectations for their teams. On the other hand, it contaminates the “standardization” H.R. is trying to implement with regards to sales performance evaluations.

One sales manager may evaluate his or her sales reps based on a goal of ten new appointments per week. A sales manager in another branch may require fifteen new appointments per week. So, a rep in one city is evaluated with a passing grade, while another rep, with the same or better performance in a different city, is given that all famous “needs improvement”.

 

Equality of Sales Performance Evaluations

All organizations should insist that performance evaluations for sales reps take it to the next level. If a rep needs to improve in an area, the manager should be required to develop “action items” that will help the rep improve. A rep, for example, that needs help prospecting for sales should be handed a sales prospecting CD. The cure for most deficiencies can be found in sales training.

I know we are all looking for the perfect rep and that’s why sales rep evaluations are measured against models of perfection. Although it’s not the only performance criteria, quota attainment must always reign supreme. If you didn’t hit your sales numbers, you didn’t do the job.

Good luck with your sales performance evaluations!

Nick

 

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