SPIFF (Sales Performance Incentive Fund) is a short-term reward that sales reps receive for meeting their assigned goals and objectives within a specific time frame. Since SPIFF is an immediate bonus, it motivates sales reps to achieve optimum performance while working on their goals and objectives.
SPIFF is a great way to ensure you have a fun and rewarding work culture within the company. SPIFF allows you to reward your top performers at the end of each quarter based on their performance.
SPIFF (Sales Performance Incentive Fund) is an amount that a company sets aside to reward its sales reps for achieving short-term goals. SPIFFs are a great way to motivate and reward your sales staff while helping your company grow to greater heights.
A SPIFF program is a short-term campaign to incentivize or reward the sale of certain services or products. If a rep is shaky on their sales numbers and needs an extra push, vendors love to give them a small bonus for going above and beyond — especially when you add it up to the base salary.
SPIFF programs can include rewards like an extra commission or gift cards but can also involve more complicated benefits such as partnership upgrades, cash prizes, or holiday trips.
Yes, they do. Salespeople are often motivated by money and recognition, and SPIFF is a way to help them achieve both.
The benefits of implementing SPIFFs for sales are numerous and these include:
SPIFF is a percentage of sales, whereas commission is a percentage of profit.
SPIFF is a flat rate that is paid to the affiliate based on the sale of an item. The flat rate can be calculated in any way the merchant wishes but will usually be based on the profit or revenue generated by each sale.
A commission is usually calculated as a percentage of the total net profit generated by a sale. If you're paying a 10% commission, and your product costs $100 to make and sell for $110, then your commission would be 10% (or $10).
The difference between a SPIFF (Sales Program Incentive Funds) and SPIV (Sales Performance Incentives) is that a SPIFF is a temporary incentive while a SPIV is a permanent incentive.
A SPIFF is a bonus that a company gives to its employees. It can be classified into two types:
Forget the hassle of calculating incentives for your sales teams with Compass. Manage and automate sales incentive programs easily, from launching to calculating and disbursing incentives.
Here's a step-by-step process to follow to run a successful SPIFF program:
Yes, SPIFFs are taxable. In many cases, they can often be taxed depending on the exact type of reward or incentive. Make sure that your employees are making themselves aware of any SPIFFS taxes that may be associated with those incentives.
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.