A lot has been written about the interests, attitudes, and behaviors of Millennials (those born between 1981 and 1996). Among the facts that have been reported, primarily by the Gallup organization, these stand out:
- Millennials will account for 50 percent of the US workforce by the year 2020.
- Only 50 percent plan to be with their current company one year from now.
- Only 29 percent are engaged at work.
- At the 2016 Sales Compensation Conference, research done by Michael Ahearne, a professor at the University of Houston, suggests that Millennial salespeople are more interested in a leveraged compensation plan than their traditional peers
Based on our research and experience, we believe the following should guide the treatment of Millennials:
- Millennials want to grow in a job that fits them.
- They enjoy more periodic feedback than other generations.
- They have a firm desire to be considered for a “fast track” promotion if their performance warrants.
- Millennial salespeople want to be rewarded for their results.
All of this signals the importance of rethinking how to recognize and reward superior performance of an increasing population of Millennials in the sales organization.
So, what are some of the ways to consider?
Following are four possible approaches. Understandably, careful analysis will need to be undertaken to ensure any new approach or program can be aligned with a company’s overall culture and reward strategies.
- Career Pathing. To better retain Millennials offer individual career growth paths that spell out how a salesperson of any age can advance in the organization. According to reports, Credit Suisse, the international financial services company, did just that and believes that its 1% increase in retention can save $75 to $100 million a year.
- Outstanding Achievement Award. For all salespeople who clearly demonstrate stellar achievement, for example candidates for “The President’s Club”, offer them a new, end-of-year special bonus that can be used to support their outside-work deep interest. Examples could be a local community group (Boys & Girls Club) or the local alumni chapter of the college they attended.
- Enhanced Engagement Opportunities. To better engage Millennial salespeople, offer all employees some new or enhanced opportunities to participate with company executives. One example is providing structured networking with senior company executives (Sales VP, CFO, CMO, VP Operations, VP HR). Video chats, such as an “Ask the CEO” forum, might also be considered.
- More leverage in the Compensation Plan. Move, for example, from an 80/20 compensation plan for sales people to a 70/30 plan.
Survey Your Salesforce
Not sure your Sales Compensation Plan or talent management programs need a major change to accommodate Millennial salespeople?
Consider evaluating where you stand today by conducting a Salesforce Survey with the entire salesforce asking for the recipient’s age category and opinions on a number of topics, e.g., career pathing, training, current compensation pros and cons, and incentive leverage. The survey results can offer a baseline snapshot of today’s situation. From there, discussions can be started to lay a forward path.
If you would like to discuss this topic or your other salesforce compensation needs further, please contact Tim Weizer at email@example.com or 312-479-6411 or Neil at firstname.lastname@example.org. Also feel free to share this article with anyone who might be interested.