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re: How Would You Handle? Employee spends too much on company card. But is top producer...
Posted on 6/28/22 at 7:52 am to tadman
Posted on 6/28/22 at 7:52 am to tadman
quote:
I've been on both sides of that equation and it is not an easy answer. Here are a few thoughts, not in order.
1. Is any of that going to customer dinners? I am generous with customers that (a) spend a lot, (b) are having problems with us IE late or warranty, (c) first order, (d) Christmas. I find this comes back around big time.
2. Is the employee frustrated? I find myself and other salesmen are more apt blow out the expense account when the main office is not keeping up. I would consider a discussion with your salesman about his satisfaction level. Is there any dead wood in the office? Are things late? Is the quality compromised? Is the customer happy?
3. If things are good and he just considers it justifiable to buy steaks based on his stellar performance, you have two options: (a) suck it up, it's better than paying two more employees and their healthcare and travel costs; (b) reinvent his comp plan. Give him a variable overall budget related to revenue, profit, days on the road, etc... rather than a flat per diem. You can build in many factors and benefits here other than per diem. You are essentially making him the owner/CEO of his own small profit center. If he wants to blow out $250/night on steaks, it comes out of his P&L and affects his comp.
This will not only reinforce good spending habits, you may actually see nights on the road go down, mileage, etc... and more problem solving when it comes to the big picture. If he feels someone in the home office is sluffing off, he will be more incentivized to address the issue with you or go right to the source and attempt to problem solve.
All of this... employee empowerment creates loyal and engaged employees. Give him some skin in the game, make him feel like he has ownership in these kinds of decisions and he'll fight for you.
0
Posted on 6/28/22 at 7:54 am to I Love Bama
I would make a separate set of rules that work for both you and other high earners, such that it will incentives others to do better and also give you an out for justly allowing it.
Don't make the new set of rules on your own. Call in this top producer and tell him that you recognize his good work but that the way he is doing it does not fit the current model and the reason for the meeting is for you to listen to what this top earner thinks he needs to continue to perform at a high level and you to provide the feedback as to yes or no the company can/can't afford or can/cannot justify. In the end, he should understand the companies position better and also give you a reason to get on his arse that he cannot refute if he breaks it.
Don't make the new set of rules on your own. Call in this top producer and tell him that you recognize his good work but that the way he is doing it does not fit the current model and the reason for the meeting is for you to listen to what this top earner thinks he needs to continue to perform at a high level and you to provide the feedback as to yes or no the company can/can't afford or can/cannot justify. In the end, he should understand the companies position better and also give you a reason to get on his arse that he cannot refute if he breaks it.
Posted on 6/28/22 at 7:54 am to I Love Bama
quote:
You think I am bitching about this if he is with a client? No. He's eating alone or with some random he picked up.
If he didn’t have a client with him then anything over the per diem should come out of his pocket…it’s that simple.
Posted on 6/28/22 at 7:55 am to I Love Bama
Maybe introduce some higher tier for performers like him, and make it a club of 1 to start out. Level with him though that he needs to adhere moving forward, but that his good work did lead to his higher allowance.
Posted on 6/28/22 at 7:55 am to I Love Bama
If you dont want to pay the guy a little extra which amounts to a crumb in the big picture, he should leave and start his own place. The way he outsells everyone at your place, he should do fine
Posted on 6/28/22 at 7:57 am to I Love Bama
Behind closed doors tell him the great things and then ask him about the pattern. He will fess right up and pledge to not do it again.
Posted on 6/28/22 at 8:00 am to I Love Bama
I would tell him how much I appreciate his work ethic and productivity, advise him that I was going to reward him for that with some paid time off, a small bonus, or other incentive, but that we had to stick to the per diem amount in all cases.
Posted on 6/28/22 at 8:01 am to I Love Bama
This could be a sign of something bigger. Is his comp plan fair? How much would it cost to recruit and train someone else of his caliber? This might be an opportunity to have an honest conversation about all of that and clear the air. Could go a long way toward keeping him happy and feeling valued.
Posted on 6/28/22 at 8:03 am to I Love Bama
125 per diem seems high by itself
This post was edited on 6/28/22 at 8:04 am
Posted on 6/28/22 at 8:03 am to tadman
One other thought is asking him to be a mentor. This has a HUGE caveat: Sometimes the best salesman is a TERRIBLE sales manager and vice versa.
But if he is selling 3x the other guys, provided it is profitable, you have a couple more options:
1. have him ride 1-2 days a year with the other guys
2. have him evaluate - top dogs know other top dogs.
3. have him mentor or create a list of goals
4. then get him back in his territory and make it your full time job to check in with the lesser salesmen on their plan
He may recognize a few B+ players with potential. He may also recognize a few D+ players that need to get cut because they will never achieve.
Finally, look at your own organization. Can it handle 20-50% more sales? I've hired on at a few places that thought sales=>profit. It was when I was much younger and more gullible. But there were some really hard feelings when sales =/= profit. Instead we bogged down on the new business, lost money on everything, and were worse off.
If you have five salesman, and one is Michael Jordan, three are B+ players, and one is a dud, dump the dud, pick your best B+ and grow him to be Scottie Pippen, and evaluate your throughput ability before you supercharge things.
But if he is selling 3x the other guys, provided it is profitable, you have a couple more options:
1. have him ride 1-2 days a year with the other guys
2. have him evaluate - top dogs know other top dogs.
3. have him mentor or create a list of goals
4. then get him back in his territory and make it your full time job to check in with the lesser salesmen on their plan
He may recognize a few B+ players with potential. He may also recognize a few D+ players that need to get cut because they will never achieve.
Finally, look at your own organization. Can it handle 20-50% more sales? I've hired on at a few places that thought sales=>profit. It was when I was much younger and more gullible. But there were some really hard feelings when sales =/= profit. Instead we bogged down on the new business, lost money on everything, and were worse off.
If you have five salesman, and one is Michael Jordan, three are B+ players, and one is a dud, dump the dud, pick your best B+ and grow him to be Scottie Pippen, and evaluate your throughput ability before you supercharge things.
Posted on 6/28/22 at 8:05 am to I Love Bama
quote:Do like Nick, put him in a Charger.
I Love Bama
Posted on 6/28/22 at 8:06 am to I Love Bama
Fire him, this topic reeks of boomer logic.
This post was edited on 6/28/22 at 8:07 am
Posted on 6/28/22 at 8:09 am to soccerfüt
He knows what his per diem is.
Spending double on his per diem, especially when it’s not with a potential or current client is stealing.
If he’s stealing per diem money, what else is he stealing?
Spending double on his per diem, especially when it’s not with a potential or current client is stealing.
If he’s stealing per diem money, what else is he stealing?
Posted on 6/28/22 at 8:09 am to fr33manator
Rules are there to limit the losses of losers. Winners bend them to win the game.
Holy frick! How come I’ve never heard of this saying!? Where did you get this? Where is this from?
Holy frick! How come I’ve never heard of this saying!? Where did you get this? Where is this from?
Posted on 6/28/22 at 8:09 am to I Love Bama
If he is a great in sales and he is making many more times than he is costing you on meals then it is probably wise to leave him alone. If his results should change then have the talk. Maybe take him aside and say what you are seeing and you are willing to somewhat look the other way as long as his end results continue but that you do have acceptable limits to his spending and you will be paying attention. If his results stop you remind him of your previous discussion. If you think motivated sales reps are out there that know your customer base they way he does then push the rules. Question is can he take his talents elsewhere and can you replace them easily. If easy to find a replacement maybe you have a better position. This I can promise you…if you press the “expense report rules” he knows ways of burying those costs in his expense report that you nor a forensic data scientist will ever find. You will end up paying for those dinners one way or another.
Unfortunately everyone thinks they can be in sales and while it seems all fun and games there is so much more to closing the sale and getting repeat customers.
Good luck. Keep us posted.
Unfortunately everyone thinks they can be in sales and while it seems all fun and games there is so much more to closing the sale and getting repeat customers.
Good luck. Keep us posted.
Posted on 6/28/22 at 8:12 am to SomethingLikeA
quote:
Did he use $125 the day before or day after? Maybe he thought since he skipped a day he could double down
This was my thought, as well. At the end of the week/month is his spending in line or way over the budget? Not that he needs too hit the budget, but if he were my top producer and skimped a few days to do it big here and there I think I would be making an exception.
Posted on 6/28/22 at 8:13 am to I Love Bama
That is a tough call. My advice from the viewpoint of someone who has been a top producer and has managed top producers is as follows (and it depends on your relationship with him)
I would say something casually about it, not making it a confrontational discussion but begin by recognizing he kicks arse, that the company see that and then mention the occasional overage is one thing but it should be the exception not the rule.
Him having a hell of a steak and wine on the company dime is kind of BS but he is a winner as well.
One size fits all policies are part of the issue. Why is Joe lazy arse at $125 a day?
I would say something casually about it, not making it a confrontational discussion but begin by recognizing he kicks arse, that the company see that and then mention the occasional overage is one thing but it should be the exception not the rule.
Him having a hell of a steak and wine on the company dime is kind of BS but he is a winner as well.
One size fits all policies are part of the issue. Why is Joe lazy arse at $125 a day?
Posted on 6/28/22 at 8:14 am to I Love Bama
Take away the company card and make him use his own card and submit for reimbursement
Posted on 6/28/22 at 8:16 am to I Love Bama
Leave Mark alone. It's the cost of doing business.
Posted on 6/28/22 at 8:19 am to Realityintheface
quote:
Holy frick! How come I’ve never heard of this saying!? Where did you get this? Where is this from?
I just made it up. It seemed apt.
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