When it comes to delivering profitable revenue growth, it's not how many hours a sales force works, it's how they allocate their time. And rewarding salespeople with more incentive- and stock-based pay can make a big difference as well, according to a new survey by Watson Wyatt Worldwide, a global consulting firm.

In its survey, Watson Wyatt found that salespeople at financially high-performing companies spend 40 percent more time each year with their best potential customers and an additional three to four hours each week in high-value sales activities than salespeople at low-performing companies. Furthermore, they spend 30 percent less time on administrative duties than their counterparts at low-performing companies. High-performing companies experienced faster sales growth and superior financial performance compared to their industry peers. The results are based on a survey of 841 sales professional at 500 companies with large sales forces.

“It may seem fundamental, but the way sales professionals allocate their time is critical - even a couple more hours per week on these key activities can make a real difference,“ said John Bremen, director of
Watson Wyatt's sales force effectiveness consulting practice. “Who they spend their time with is also important. Not only do sales reps at successful companies spend more of their time identifying customer needs and demonstrating products, they also spend more time with qualified leads and prospects they know.“

High-performing companies also provide their sales forces with greater earnings potential through variable pay based on their sales performance. Salespeople at high-performing companies receive approximately 40 percent more of their total cash compensation in the form of variable pay than sales professionals at low-performing companies (38 percent of total compensation versus 27 percent). Additionally, twice as many sales professionals at high-performing companies receive stock, stock options and other equity pay than sales professionals at low-performing companies (36 percent versus 18 percent).

“High-performing companies offer more performance-oriented rewards to help attract and motivate their sales forces. And by getting more of their salespeople to become overachievers, leading companies can help ensure higher overall company performance,“ said Ted Briggs, a senior consultant at Watson Wyatt and co-author of the book Sales Compensation Essentials.

The survey also found that salespeople at high-performing companies tend to be “believers“ in their companies, and have more favorable views of their companies, products and internal support. For example, 83 percent of sales professionals at high-performing companies believe their products and services are among the best offered in their market versus 57 percent at low-performing companies. In addition, 70 percent at high-performing companies consider their products and services to be innovative versus just 39 percent at low-performing companies.

“The most well-respected and successful organizations grow by finding ways to engage and get the most out of their salespeople,“ said Bremen. “Managing a sales force is about creating a win-win situation. A company that helps its salespeople become successful will ultimately reap the benefits of their achievements.“