Pay For Performance: More You Work, Better You’re Paid! Read Here!{MAY-2023}

Pay for Performance
Pay for Performance

We believe it’s about time DMSRetail has weighed in on the issue to Pay For Performance pay plans. The first step is to be clear about the misconception that Pay for Performance compensation plans are detrimental to an enjoyable shopping experience. It’s not true.

Actually, contrary. An easy, straightforward Pay for Performance program for compensation will improve your shopping experience.

The people who believe in this myth don’t have a clear view of the bigger picture.

They believe that when you give incentives for selling that you’ll be able to fight with customers; that customers are being sprayed by one salesperson after another, and a array of other unsettling situations that are taking place.

To be precise, we know that there are badly controlled, untrained salespeople who are not professional and can actually create problems if they are allowed to.

Of course like in any other group, there are bound to there be some bad apples, and should those who are bad apples be permitted to affect the shopping experience of the consumer, then it is an issue.

What, and who could be really responsible in these instances? It’s not likely to be any pay plan…probably management.

And, if the management cannot solve the issues discussed above, they might are dealing with other issues too, ….probably several actually!

Instead of focusing on the things that could be wrong …let us consider the huge benefits that can be enjoyed when a sound payment for Performance compensation plan is implemented.

In terms of compensation Here’s a list of individuals who have likely earned (or earned) significantly more than their colleagues: David Beckham, LeBron James, Wayne Gretsky, Sidney Crosby, Magic Johnson, Michael Jordan, Derek Jeter, Diego Maradona and Kevin Durant.

What are they in the same? They’re all superstars within the realm of sport, naturally.

Every team requires stars.

If everyone got paid the same amount without any chance to earn more, those more talented or skilled and prepared to push themselves to the limit may look to other places in search of amount that matches their capabilities.

They could find themselves easing their own performance, and become”one part of the group’.

If there’s no need to make them push their limits and invest sweat, blood and tears, as they say isn’t a good idea, then why bother? Of of course, there are emotional motives, and they’re relevant. However, they don’t always last.

That is the brightest, best and top performers – or however you would like to describe it – should be compensated for what they’re worth. It’s normal and there’s nothing wrong with it.

People who oppose the Pay for Performance compensation plans obviously do not believe that top performers should be compensated according to their performance. They do not believe the top performers ought to get the chance to earn much more than the low or average performers. This idea is definitely incorrect.

Most likely, you agree with the notion that high-performing athletes deserve to be rewarded better than their lesser skilled, less successful teammates.

Similar is the case in business.

There are many kinds of sales professionals, each with different levels of skill. Some are more driven to succeed than others.

Certain people are skilled at engaging customers and creating relationships much better than the rest of us accomplish. Some people are more committed to the performance of the team as well as the company than others.

Many want to earn as the most money they can as fast as they can. There are a few sales employees, who work within retail outlets, who don’t believe the importance of money.

The money may not be an incentive for those who are at the top end of the pay scale however it’s certainly an important motivator for those who are on the lower range.

A sales team who work in a retail store, could be compared to a team of athletes. 

The team members will never be alike. It will be some who excel or work harder in whatever pursuit such as business or sports.

The best performers should be compensated in accordance with their value, therefore it follows that we need to determine ways to handle the ‘team’ as well as the customer experience in a setting that has the Pay for Performance program for compensation implemented.

There is no guarantee that this will be simple, but it’s likely be simpler and, surely, it won’t be much more challenging as managing these matters with any other strategy.

Controlling your sales force as well as your customers’ shopping experience is a huge job, regardless of the other tasks you’re working on.

However, if you begin by assuming that your salespeople will be experts with the best interests of the customer as well as the business always in mind and if you are able to recruit the most qualified people and make sure they receive the education they need to be successful, then a Pay-for- Performance incentive program is the only option to take.

Your success in whatever you do whatever plan, or process will be in large part on the capacity to the store manager or business owner , to handle effectively.

If you don’t organize effectively, employ competent people and properly train your employees, you’ll be already doomed no matter the way you pay your employees.

Many believe that it’s more challenging to manage and achieve amazing results

In order to provide customers with an exceptional shopping experience, and consequently gain more sales when an incentive compensation program is in place. However actually it is the opposite.

What you will see in typical compensation plans. Where everybody makes the same amount and nobody is able to earn more is a bunch of employees managing the shop and taking care of their duties and answering questions from customers and so on.

With a well-designed Pay for Performance plan implemented, you will not observe all of your salespeople gathered at a cash counter or in the rear of the store, or working while their heads are down or squinting. You won’t even see salespeople pointing customers towards what they’re looking for.

You’ll see sales representatives developing relationships to customers…actually showing some love of the person that walks into the shop. The product knowledge of your salespeople is quite sharp.

They will also strive very very difficult to meet their sales goals with professionalism and in a non-threatening manner, since, as you’ve already mentioned you hired experts and properly trained them and managed them well.

The experience of shopping for the customer will be more enjoyable than the experience they had before. The salespeople are winners, customers benefit and the business wins.

Last Words

Here’s a tried and reliable formula to increase your sales: Set up an easy, solid Pay for Performance plan in place and efficiently manage. If you need help with compensation plans, please send an email to

The DMSRetail Ultimate Success Collection examines everything from a perspective of performance and provides a wealth of details on how to effectively manage.


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