The traditional sales bonus system doesn’t work. We’ve been stuck in an outdated, convoluted system that doesn’t make sense anymore. It’s time we rethink how we pay salespeople because the way we’ve been doing it is not just broken; it’s damaging.
For too long, bonuses have been the golden carrot we dangle in front of sales teams, hoping to incentivise them to hit their numbers. But here’s the problem: we’re all adults. We shouldn’t have to manipulate people with bonus schemes to do their jobs.
It’s all about trust…
The notion that salespeople need bonuses to do their jobs is a myth that needs debunking. We trust our team members with big deals, huge client relationships, and the company’s reputation. Yet, somehow, we don’t trust them enough to do their jobs without waving a bonus in their faces. The idea that someone won’t work hard unless there’s an extra chunk of cash coming their way is patronising and insulting. If a salesperson isn’t delivering, they should face the same consequences as anyone else in the business—up to and including losing their job. A bonus shouldn’t be the only thing keeping them on track.
Power to the People
Here’s an idea: instead of relying on a complicated bonus structure as let’s be honest you’d need a degree to work out how some of them get paid, why don’t we focus on paying our salespeople a high, reliable salary? I’m talking about paying them enough so they don’t have to worry about paying the bills if they have a slow month. It’s about giving them the financial security they need to focus on what really matters—building genuine, long-lasting client relationships and driving sustainable business growth.
Trust your people to do their jobs without constantly second-guessing whether they’re holding back leads or inflating pipelines to game the bonus system. Because we all know that’s exactly what happens. We’ve all seen the end-of-quarter scramble where suddenly, miraculously, deals that have been on ice for months are resurrected just in time to hit that bonus target. Or worse, the fake pipeline that looks great on paper but never materialises into actual revenue. These tactics are hurting your business more than helping.
Monthly Outgoings: The Silent Killer
One of the biggest drawbacks of the traditional bonus system is the way it messes with your team’s finances. Imagine trying to manage your monthly outgoings when a significant chunk of your income is variable. It’s not just stressful—it’s unsustainable. Salespeople are left in the lurch, trying to predict whether they’ll hit their targets or be forced to tighten their belts for another month. This kind of financial uncertainty doesn’t just affect their bank accounts—it impacts their mental health, their job satisfaction, and ultimately, their performance. How can you expect someone to give their best when they’re constantly worried about making ends meet?
Focus on Output, Not Numbers
Instead of obsessing over how many visits they’ve made or how many clients are on the forecast, let’s shift the focus to output. Are your salespeople building strong qualified relationships? Are they pitching for work that fits with the business plan? Are they securing long-term contracts that will benefit the agency for years to come? These are the metrics that matter as to be honest, it’s not just down to the salespeople to close deals, that’s a company objective too. Numbers can be manipulated, but real, tangible results can’t. When we focus on output, we’re not just rewarding salespeople for doing their jobs; we’re recognising the real value they bring to the table.
Sales is the Hardest Job in the World—So Treat People Like Humans
Sales is tough – believe me, I’ve been there and still am as a business owner. It’s one of the hardest jobs there is because salespeople are the ones on the front lines, dealing with rejection after rejection, pushing through to land that big deal. Salespeople should be some of the highest-paid employees in the business; they deserve to be treated like the skilled professionals they are, not like children who need a reward for good behaviour. By scrapping the bonus system and paying them what they’re worth, you’re not just giving them financial stability—you’re showing them the respect they deserve.
It’s time to stop treating salespeople like cash-hungry machines that need a constant influx of bonuses to keep running. They’re professionals who deserve to be trusted, respected, and paid well for the difficult job they do. Ditch the outdated bonus system, pay your sales team what they’re worth and watch them deliver results—not because there’s a carrot at the end of the stick, but because they’re valued members of your team who want to succeed.
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About the author.
I’m Robert Kenward, Chief Talent Officer and creator of FitabilityⓇ.
I’ve been working in the recruitment, Live Events, Brand Experience, and Experiential Marketing space for over two decades. I’ve been a candidate, a client, and a recruiter.
This makes me well acquainted with the challenges you face and enables me to cover the entire talent spectrum above £60k.
I care deeply about my work and I’m generous with my time.
Hit me up if you’d like a new perspective on solving classic hiring problems.
07710 681980
Or book directly into my diary HERE to see how I can help you attract, select and retain your next senior hire.
