“They can’t make that much. That’s more than I make!” Way to go, you’ve just capped the compensation of your best Salesperson. They will now go look for a company that allows them to keep earning. It may be hard to imagine right now, but we are about to enter the War for Talent. As companies begin to grow again, they will need to hire. Guess what! Nobody is searching the Unemployment Line looking for the next great Salesperson. They are going to be searching your payroll! Watch out, here come the Executive Recruiters!
For the most part, Sales teams are the face of the company. You can’t afford to have “B” level players in that position. Protect your best people – don’t let them hold you hostage, but protect them. Whether you are a Sales Manager, Vice President of Business Development, President, or CEO – take the compensation cap off and see what your people can do. Support them, give them the tools they need, and compensate them for hard work and results – you’ll be surprised at what you get in return.