Carrot, Stick…or Something Better?

Carrot, Stick…or Something Better?

Chris emphasizes the importance of finding personal, meaningful reasons to excel beyond mere financial incentives.

When a new sales consultant starts at a dealership, he or she feels the excitement in the air. A new position is filled with opportunities, and the sky is the limit.

In most dealerships after a few days or weeks in, their initial excitement wears off, and the day-to-day activities start to feel more mundane. The sales consultant might still have big dreams, but the initial surge in learning the job has burned down, and the realities of the position have taken hold.

Finding continuous motivation becomes key to fuel the daily, weekly and monthly habits and activities that will propel that sales professional into success. But what types of motivation provide the best fuel, and what is a leader’s role in encouraging their team to be their best selves?

In the dealerships of old, management would rely on extrinsic motivation to keep their sales force going. This is the “carrot and stick” method of management, which is using a combination of rewards and punishment to get the desired results. To use a simplified example, sell more than X number of vehicles, and you’ll receive a spiff. Sell less than Y number of vehicles and get fewer leads, work longer hours and/or get fired.

One of the challenges with this type of leadership is that it makes people dependent on external rewards. There’s a psychological term called “hedonistic adaptation” that describes the feeling of being excited about getting a reward, but eventually this excitement fades. For example, when someone gets a raise, they are excited until they get used to making that amount of money. Then, as they become accustomed to it, it becomes the “norm,” rather than a motivation. In other words, the “new” has worn off.

The other challenge with the “carrot and stick” method is that while they might get used to having the carrot, fearing the stick is not the best way to foster creativity and growth. Simply doing enough to get by — to avoid the stick — will be the area where many people settle.

The best leaders clearly understand that while extrinsic motivation might work for a while, it’s not the method to build a sales team that strengthens each other while benefiting both the team member and the dealership. Encouraging intrinsic motivation, where the sales consultant is finding and understanding meaningful reasons for excelling at their position beyond gathering external rewards or avoiding fear, provides substantial opportunities for real growth and improvement.

Again, though, it’s important to encourage team members to find meaningful motivation for themselves. Simply “making more money” won’t necessarily provide the energy needed to sustain long-term growth.

So, beyond financial motivation, how can we encourage our team to constantly improve their skills and achieve success?

Encourage Meaningful Viewpoints If a leader asks their team members what they want to achieve in their career, “more money” will often be the quick answer. But, if the leader encourages their team to think deeper about that question, it puts everything in a different light. At a dealership, our goal is to assist our customers in finding the right vehicle for their needs. Understanding this, rather than to “move metal,” will provide insight that will support our team in understanding their career at a deeper, more meaningful and rewarding level. It shows that their performance and results matter.

Personal Development — When we offer opportunities to allow our team to build their skills and develop as a professional, those wanting to succeed will appreciate this. This type of development could be workshops that will teach them new skills, feedback to improve their presentations or opportunities to test new ways of connecting with customers.

Creating a Positive Work Environment — Building a workplace that people want to be a part of creates a team atmosphere, and becomes something more than the sum of its parts. This requires leadership to take an active role in generating this type of culture. When we allow people with bad attitudes to infect others, for example, the atmosphere will never be something that people look forward to experiencing. Great leaders keep this in mind during the hiring process, as well as during onboarding and continuous ongoing training.

Celebrate Their Progress — When someone goes above and beyond, or reaches a milestone, public recognition goes a long way in providing motivation. This isn’t “carrot and stick” thinking. This is demonstrating that their leaders have noticed the effort they’ve put forth. Remember, what gets recognized and rewarded gets repeated. “Catch” people doing something right!

As leaders, I believe it’s important to understand that once the bloom is off, our team members in most cases will need intrinsic motivation that will allow them to continue to put in the effort and energy needed to grow in their careers — and in their lives. As leaders, let’s support them in refining the fuel they need to reach their best, most successful results. 

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