Cash, merchandise motivate sales staff during holiday season

New York—When coming up with a sales incentive program that drives profits for the holidays, jewelers should take a good, hard look at their staffs and their businesses, experts say.

It is important to consider the size of the operation, the compensation structure, and the personalities of the members of your sales force, among other factors, when determining how to motivate your personnel—especially in the frenetic fourth quarter.

According to jewelers and management experts who spoke to National Jeweler, the most effective programs are those that stress variety. Rewards should not be predictable, or automatic. At the same time, it's important to create as many winners as possible (at least among the employees you hope to keep).

Most experts agree that it's best to give "spiffs"—bonuses based on sales of particular items—and other rewards for both individual and team performances. If incentives are entirely team-based, they can lead to dissension and arguments. If they're all individual-based, you risk causing resentment when your top salesperson wins all the prizes.

"We suggest daily, weekly and monthly incentives," says Suzanne DeVries, president of Diamond Staffing Solutions in Derry, N.H. "Meet with your employees prior to the holidays and ask them what awards they would like to see offered: cash, dinners, theater tickets or travel. Be sure to include part-time and administrative personnel."

DeVries suggests recognizing individual employees in categories such as: selling the largest dollar amount during a season; making the largest single sale; selling the largest diamond; or even earning the most customer compliments.

A jeweler who can't afford many bonuses can rely on programs from suppliers, such as watch companies, which often offer cash or product for top salespeople. In some operations, the sales process is collaborative, making it difficult to credit any one person. In that case, consider putting all sales bonuses into a pot and divvying them up post-holiday—perhaps based on hours worked.

Candy Udell, co-owner of London Jewelers, based in Manhasset, N.Y., says jewelers should make sure everybody wins—and she recommends using mainly cash prizes.

"Contests don't always have to be sales-focused," she adds. "I ask employees to fill out 'customer cards' for almost anyone who walks in the door, and we'll run contests to see who can create the most cards. Usually supplier programs operate on a points system by which if you sell a certain amount, you'll accumulate points towards a cash award or free merchandise. Sometimes we pool those points, so that the gift-wrappers and the back-office personnel are taken care of."

Vickie Blevins, owner of James Middleton Jewelers in Memphis, Tenn., says small spiffs on individual sales work well, particularly for salaried employees.

"We don't have the consistency of sales to offer commissions, so I use bonuses to help sell older merchandise," Blevins says. "Salespeople get an extra $25 or $50 for selling something out of the 'bargain' showcase. We might have each salesperson pick a favorite item, in different categories."

Terry Weiner of Leeds & Son Jewelers in Palm Desert, Calif., follows the individual- and team-reward approach.

"Besides the standard commission, we do daily spiffs—individual and team if the store reaches desired goals," Weiner says. And the team spiff goes to service technicians as well as salespeople.

Tom Neville, owner of Tom Neville The Source in Mont- gomery, Ala., gives out classic jewelry as bonuses.

"Some of them would be reluctant to spend their own money on these pieces, so we give them basics, such as pearl necklaces, in the $1,000 to $2,000 range," he says. "It gives them something to look forward to at the end of the year, and we want our people to wear fine jewelry in and out of the store—to give everyone else the idea to buy it."