• When Should We Respond to Request for Proposals (RFPs)?

    The RFP from a whale prospect lands in your in-box. What do you do next?

    Most salespeople get excited, tell their boss that all their hard work cosying up to this company’s middle management and procurement team has paid off. They’d spend a day or two reading through the tome that reminds them of War and Peace, written by an 8-year old lawyer. Then they’d get the team together to plan who was going to do what. Much resource would be thrown at meeting the unreasonable deadline set by the “prospect” … but not much actual thought.

    They wouldn’t ask some fundamentally important questions; questions to which answers are imperative to decide what we do next, because  NOT ALL RFPs ARE LEGITIMATE! In fact, most aren’t. Most are an attempt to get free consulting from vendors too scared, excited, lazy or stupid to check if the RFP is even real.

    Consider these questions…

    • How did we make the list for receiving this RFP?
    • How many RFPs were sent?
    • What do we know about the prospect’s history surrounding RFPs?
    • Do they have a preferred supplier list (PSL) and are we on it?
    • If not, do they always give the business to someone on the PSL?
    • If we decide to participate, what happens next?
    • What role, if any, will their incumbent supplier play?
    • Will the low bid be the one that wins?
    • What results is the prospect company hoping to achieve by implementing the contents of the RFP?
    • Why aren’t they doing it in-house?
    • Is the timescale realistic?
    • Do we understand what caused them to go to market with this RFP? DO we understand the different drivers and centres of dissatisfaction?
    • Do we have a sponsor, coach or advocate in the prospect company to whom we can submit a rough draft, have it critiqued to make sure we have identified their priorities and covered all the issues they consider most important?
    • Are they high enough in the company to be able to provide us with the answers we need or just the ones they are willing to give any vendor?
    • Should we involved our senior management?
    • Have we identified to whom the prospect’s decision-making committee already has allegiances by suing our personal networks, trawling through LinkedIn and the internet to see what connections they have to our competitors and the incumbent?
    • What is the likely cost of sale to participate in this bid, win or lose?
    • Is this even legitimate?
    • Can we win it?
    • Are there any conditions that we do not qualify against that will preclude us from winning this e.g not ISO9000 compliant, no sector experience and sector experience is a must have, we don’t have 3-years accounts, they want to use their T&Cs not ours, our non-negotiable payment terms are unacceptable to them?
    • Do we want to win it?
    • What opportunity cost will we incur if we plough time, money and resources into this bid and is there a better way to invest our scarce and valuable resources?
    • Is this RFP going to be profitable if we win it? By when?

    Once you have your questions clear in your mind, are you allowed to speak to someone, not in procurement or a technical buying capacity, at a high enough level to understand the business drivers behind this RFP invitation?

    Given that RFP responses are usually the second highest hidden cost in any selling organisation after wrong hires the killer question you need to answer for yourselves is:

    • What are our chances of winning it?
    • Should we participate in this RFP process?

    Take the emotion out of RFPs and never lift a finger until you have done your research and picked up the phone.

    A simple rule of thumb for management to eliminate wasted effort and falling into the free consulting trap is that selling the opportunity internally should be twice as hard as selling it to the prospect.

    Live by the principle that you should do less but better on purpose.

  • Reflections on becoming 50

    So on the 4th of November I am 50. Seems like a time to reflect not so much on what I have done, good or bad but what I have learned. So, if your Facebook feed is a little empty perhaps you can allow me the self-indulgence of sharing my thoughts.

    I have probably learned more in the last 5 years, perhaps even the last two than all the rest put together. Learned that is about the fundamentals of the human animal that is us all.

    So in no particular order:-

    Listening: very few people can truly listen. When I say listen, I mean to be aware of every single tiny nuanced emotion that is triggered within you when the other person speaks. To be truly aware of our biases, our assumptions, our generalisations and our ability to distort, even subtly, what the other person is saying to suit ourselves, without judgement.

    That is listening. To be truly in the moment for the other person. Take that listening to another level and being able to see and feel how that other person sees and feels, even if what they say appears ludicrous or even insane to us, it is what they think. That person has a set of beliefs and biases that they may not even be aware of. It’s their model of the world. You can recognise it but don’t have to go along with it. However, it is them. I understand this may be called compassion. This is a new thing for me!

    Communicating: more of the time human beings are probably miscommunicating. If we can’t truly listen, if we let our beliefs cause judgements then we can’t communicate effectively. At a basic level this leads to disputes or misunderstandings between partners or on a global scale, leads to wars. Waring over religion is such an example. One set of brainwashing competing with another.

    We become the people we surround ourselves with: This is both positive and negative and probably quite a subtle and medium term effect. This has been a massive lesson for me in the last two years since I joined Glasgow Triathlon Club. I have not met a group of people so supportive, open minded and encouraging. No adventure is too mad or crazy. In no time at all this becomes infectious and you start to achieve more than you even imagined possible. You then share and support newer or less developed members.

    A fellow club member is also the coach of a woman’s Gaelic Football team. He has instilled a very simple but hugely powerful ethos in that team: be positive and have fun. In no time at all they have become the Scottish Champions, The British Champions, beaten the European Champions and will now play against the very best in Ireland. They love being surrounded by such positive people.

    Our body is amazing: If you give up on your body, it gives up on you but never lose hope, with a little bit of nurturing and patience it will repay you many times over. We often are in awe of the Olympians and para-Olympians but they are biologically no different from us. They have just put some time in. We don’t have to become super athletes but we all have an inner athlete which is bursting to come out. I was belted at school at P.E. I hated it, the teachers and sport in general but in the last year have participated and even won events.

    There are 80-year-olds who complete marathons and Ironman Triathlons, who ski, cycle and run. My better half was told by her GP she would need one or perhaps two knee transplants. She took up swimming, then cycling and now running. She no longer takes pain relief for her knees or struggles with bad knees. Give our bodies a chance and it repays with much better health, better sleep and a longer and higher quality of life.

    Our minds are amazing: For sure I am only on the early stages of this journey. Understanding where our motivation comes from or goes to. How our imagination works. What brings on depression and what improves it (exercise for me).

    Facebook offers us great lessons: some of the above thoughts have been triggered by seeing the posts of so many people. We learn that our friends who seem so “normal” can have very, very different views. Scottish Independence, Brexit, Religious views, even Rangers/Celtic fans re-enforce in me every day that there is no absolute. It’s just opinions and mine is as ridiculous to some people as theirs can be to me. I was a pretty black and white guy for a long time. The world is grey and ever changing. Reality is just an illusion created by our cultural brainwashing.

    Life is a series or stages of understanding: When you are a teenager you perhaps first become aware of what “childish” means. You have passed through “childish” and hence can look back. Then as you become a student you can look back at what being a “school kid” was. Same goes for your twenties, becoming employed, a parent etc. As we go through the various stages of life, up and down, we can look back and see what we learned and perhaps have some compassion for others in that “stage”.

    What excites me is the thought that I am currently just in a stage and at some point, I will pass through to another level of self-awareness. Who knows how many stages people go though. I think many are stuck in one level or have very low self-awareness. I was stuck in a level of materialism for a long time. I now care far less for possessions and more for my health, adventures and a few close people.

    If you got this far, well done. Here’s to another 50 years of learning and growing and of course our good health!

    Alan Mackie

    Alan Mackie

    Alan has been in various sales roles for 25 years and works with businesses struggling to grow revenue and profitability to the levels they wish. Often their sales people are using excuses to hide lack of prospecting or perhaps saying everything is down to price when really it’s their ability. Often the business doesn't have a successful sales culture.

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  • Courage: Our free sales resource

    “Sales is a numbers game”.  How many times have you heard that?

    “Half of all marketing expense is wasted, we just don’t know which half”.  Is that familiar?

    What if they were just excuses to play it safe, not question our self-fulfilling beliefs, and continue to do what we have always done?

    Playing it safe.

    Experience tells us that if we want more sales, we have 3 options. Invest time and money and:

    Do more!   More marketing, more sales effort, more people.
    Do it better!   Up-skill the sales team, up-grade website and up-date the sales strategy.
    Do it differently!   Re-brand, re-position, re-vision.

    All of which work, but often just well enough to give us an excuse to play it safe and continue with what we know.

    Because of this, we can fail to consider using an infinitely powerful, free resource that is always available. Our inner courage.

    Courage. A three-step process.

    1. Ask yourself the following question. “What would I do if I had NO FEAR and knew I could NOT FAIL?”

    Who would you “cold call” that could transform your business?

    Where would you make a speech that would re-position you as an authority or industry thought leader?

    How would you talk to a prospect? To a customer?

    What stretch goal would you set yourself that would help you achieve the success you know you and your family deserve?

    What ambitious plan would you build to achieve your vision of success?

    1. If you think of something preposterous, something that you want to dismiss out of hand without really examining too closely, something that you want to back away from instinctively, don’t. Courage is acknowledging those things that scare us, but we do it any way.
    1. Share your options and your plan with a trusted advisor. Have them hold you accountable for taking action, learning a invaluable lessons from your failures and success, and encourage you to keep going.

    Success is the other side of the fear barrier- Sven Goran Eriksson

    Courage is stumbling from failure to failure with no loss of enthusiasm- Winston Churchill

    No one achieves greatness by playing it safe- DH Sandler

     

     

    Nigel Dunand

    Nigel Dunand

    Nigel Dunand runs Sandler Training in the Midlands based at the Innovation Centre in Longbridge.

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  • Do your clients see your sales people as
 Trusted Advisors?

    trustWant to get you or your people more effective at selling?  Check how consistently you/they are following steps 1-3. Even small improvements in any of these can help establish you as Trusted Advisor early on in sales conversations

    1 Gather more information than you give

    Or listen more than you talk. Ideally your prospective client should be talking 70% of the time and you 30%. How can we do that?   By asking questions, really listening to the answers and probing the answers in more detail.

    I profile a lot of people who sell (sales people, business owners, professional services) and one of the behaviours I look at is how effective they are at listening. On a scale of 1-9 (1 being low, 9 being high) the vast majority of people score between 2-4.  Even if we think we are listening, are we really?  Or are we listening some of the time, sometimes getting distracted by our own thoughts and mentally preparing the things we want to say?

    There are a lot of very smart questions we could be asking, but often the simpler ones are just, if not more, effective.

    Can you be more specific?  Could you give me an example?  Which means…? And what impact does that have?

    The advantage of asking lots of questions, not talking much and listening well is that it stops us talking too much (too soon) about us, how wonderful we are and how we can solve their problem. Instead it means we can gather information on pains, their budget and decision-making process to work out how real an opportunity this is before talking about us.

    2 Be challenging

    This is not about being awkward, or challenging just for the sake of it. I see our role as a Trusted Advisor to get to the crux of the clients issues and sometimes we need to help our prospective clients work that out too, which ties back to tip 1.

    Trusted Advisors ask tough questions that make their prospects think differently about their situation.  Equally they are prepared to have tough conversations if necessary – if you don’t think what the prospective client is asking for is in their best interests I believe its better to tell them rather than avoiding it.

    3 Be prepared to say no

    Honesty and selling don’t often appear in the same sentence, but if we want to be seen as a Trusted Advisor then that means we have to give our prospective clients the truth, rather than what they want to hear.

    If you are not best placed to help them for whatever reason I think it’s far more powerful to say that and refer them to someone else if you can. In my experience they will really respect you for that and as a result are more likely to come back to you further down the line.

    Caroline Robinson

    Caroline Robinson

    Caroline Robinson is Director of Sandler Training based in Cambridge, working with fast-growing companies who are ambitious about taking their business to the next level. Tel: 01223 882581 Mobile: 07739 344 751

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  • Active prospecting? You are joking!

    Now this might sound outrageous, particularly from Sandler Training, but let’s be honest…active prospecting does not work. Or at least it is highly inefficient. The worst culprit is “cold calling”. I mean, it is so much better to have qualified incoming leads just ready to buy than wasting inordinate amounts of time pestering people who then hide behind voicemail.

    Let’s work this out. How many dials do you need (real world) to get to speak to anybody? And then, how often are you getting the runaround? Even if you get an appointment they are unlikely to be ready to buy. Cold calling! Soul destroying stuff! And sales time can be so much more efficiently used.

    What about networking, asking for referrals, attending seminars, giving free talks, exhibiting? Well, actually they are pretty much nearly the same waste of effort. Huge amounts of effort required for almost no leads.

    So all active prospecting in effect does not work…until it does.

    Think of your largest income producing client. Not that one, the one that actually did come from active prospecting. Now, if you knew and knew for absolute certain you would get that client from doing that kind of prospecting, how much effort would you have been prepared to put in? My guess the answer is way more than the effort you actually did put in. So suddenly that time-consuming agony was worth it.

    But how can you be sure that doing more of that same activity will produce another fabulous client like that? Well obviously you cannot be sure. In the same way you cannot be sure of any prospecting activity. Until it works.

    Could you have got that client we are thinking of through incoming lead generation? Perhaps. Probably not.

    So the only way to be at least partly in control of our destiny in business is to do prospecting. Loads of it. As many different kinds of activity as makes sense (usually 3-5 different prospecting activity types is manageable). It is only with a long enough timescale that we can be sure that a certain prospecting activity is a waste of time. And even then we could have stopped just a couple of dials short of our ideal, dream prospect. Commit yourself to some hard work, doing stuff you would rather not do. After all, they say that if you claim to like cold calling you are either lying or never done it.

    Sandler has a rule

    “You never have to like prospecting; you just have to do it.”

    Paul Glynn

    Paul Glynn

    Paul’s experience spans over twenty years of selling, sales management and training. He has worked in the financial services sector including accountancy and has been responsible for the commercial success of sales departments at director level in advertising. His clients report up to 300% increase in turnover by working with him. He is dedicated to helping businesses grow through assessments, training, coaching and mentoring. Tel: 01784 390623 Mobile: 07866 518848

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  • You Can’t Manage Time

    Can't Manage TimeSo much has been written in various sales training blogs about time management that you hardly have the time to read about it. There are numerous time management programs, processes, and tools, and even with all this help, you still can’t manage time no matter how hard you try.

    There are 24 hours in a day, 86,400 seconds ticking away second by second as you read this. You can’t save these seconds or store them up; when they are gone, they are gone! Never to be recovered. Never to be recycled and reused, and although you can’t manage time, you can manage your activities-what you do in the time that you have and that will be your most effective tool for getting the most out of your time. To be a really good time manager, you simply need a process to successfully manage your activities and to manage your activities, you only need to know two things:

    • What to do first.
    • What to do next.

    Step 1: To identify what to do, take a piece of paper and create a three column daily or weekly to do list. Label one column “Must Do,” the next column “Should Do,” and the third column “Stop Do.”

    Step 2: In the “Must Do” column, list all of the things that are imperative to accomplish, things that must be completed, things that are directly tied to your goals and responsibilities.

    Step 3: Review the “Must Do” list; prioritize the items in terms of importance and difficulty. It is imperative to do the most difficult first.

    Step 4: Next, plan carefully and assign each item an amount of time for completion.

    Step 5: In the “Should Do” column, list all of the things that you would like to do because they are important, although not essential.

    Step 6: In the “Stop Do” column, list those items which tend to use/kill time that are not productive. The “Stop Do” list is a daily and weekly reminder of things you should stop doing that are getting in your way. There should always be items on the “Stop Do” list.

    So start with the “Must Do” list and begin with the highest priority and most difficult item, or the item you least like to do, and do it NOW! Today, without exception. When the time for that activity is up, STOP! And move on to the next activity. If you continue to work beyond the predetermined time limit, you are stealing valuable time away from the next important “Must Do” task. If that project suffers because of insufficient time, you will soon be in debt to countless hours of time that will never come. When you complete the “Must Do” items, you can move on to the “Should Do” items, but not until the “Must Do” items are complete.

    As time goes on, some of the things on past “Should Do” lists will transfer to the “Must Do” list, but you will evaluate them and move them, not chance or pressure or unorganized time.

    Most people have trouble getting the most out of their time because not only do they not prioritize their “Must Do” and “Should Do” lists, but they actually have too many things on their list to begin with that are neither “should do” or ‘must do”… maybe the Stop Do will be as important for you as the Must Do!

    Ralph Waldo Emerson wrote, “Finish each day and be done with it-tomorrow is a new day!”

    Blog Editor

    Blog Editor

    Lisette Howlett edits the Sandler UK blog. If you have any questions or would like to submit a blog please contact her. Tel: 020 7484 5556 Email: Lisette.howlett@sandler.com

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  • Want Change? Put a Shark in the Tank!

    Bear with me on this as I have to explain…

    People hire me to create change, create sales growth, so I’m known as a sales turnaround specialist…

    Many people will know I’m hired when a company’s Sales Operating Model is stale and failing to deliver growth. Or when the cost of acquiring new business exceeds 10% ROI. You do measure this don’t you…?

    I typically work locally with small to medium sized businesses and occasionally enterprise sales organisations in the East Midlands.

    So why am I telling you this? Well, when I walk into an organisation, I won’t be rude but I’m not hired to make friends or pander to your sales people, I’m hired to make a difference and turn your sales opportunities into profitable business and I’m looking for a feeling, those gut feelings that help me identify what’s really going on.

    So what are the signs of a poor Sales Operating Model? There can be (not all the time) a huge amount of activity at the top of the sales pipeline, working on projects that may never close, spraying valuable information, giving away free consultancy in the hope that someone will buy from you, but in reality very little actually turns into new business.

    I see lot of unsold stock on the shelves. Often the marketing and sales department (the growth department) are under resourced and treated as a necessary evil, under funded, money is tight and the people are stretched. Other signs can be cash flow concerns and infighting between sales people and departments.

    This happens when you haven’t got a Shark in the tank!

    Here’s and example: back in the 70’s someone came up with the bright idea of catching live fish in the Pacific, putting them into a tanks and flying them across America so they could sell fresh fish to the fancy east coast restaurants and get 5-10 times the price.

    They converted planes into flying fish tanks for this purpose. However upon arrival lots of fish were found dead, floating upside down by the time they landed.

    The loss was killing the business so they consulted a marine biologist. The biologist looked at the problem and quickly said,  “That’s easy! Put a Shark in the tank. Nothing so large that it will do them harm, but large enough to put some tension in the tank.” And it worked!

    If you’re managing a Growth Department (Sales and Marketing team) you need a Shark…

    What do Sharks do?

    I believe Marketing and Sales should be as one. Marketing ideal clients but driven by a sales focus, not the typical fluffy stuff you see out there…

    Sharks have a Sales Operating Model (SOM) the rules of engagement are clearly set out, a common sales language is in place so everyone knows and understands. Sharks should make the internal sell twice as hard as the external sell, the salesperson has to demonstrate the project is profitable and feasible before the company takes on the new business. They can only do this by having a ‘cookie cutter’ – a systematic way of identifying and qualifying opportunities.

    You can’t and don’t want to do everything offered. A good sales team may present 20 projects all with varying degrees of profitability, resource and time requirements. However the organisation may only be able to resource 4 to 6 projects at a time. The organisation has to have a system to be able to weight the opportunity and one that free’s up the team to move quickly as time kills sales opportunities. The team needs to quickly identify unprofitable projects and pass these onto the competition instead.

    Good SOM’s enable the sales leaders to measure the cost of the sale at each stage of the selling process, especially when pursuing costly bid requests and adapting to changes in the market.

    Without a common language the organisation is exposed to ‘woolly’ information and undermines the whole system.

    As a sales leader your job is to make the best salespeople work on the best opportunities. If you fail to do this you will fail to generate the desired results.

    Shark’s bring clearly defined accountability that includes rewards and consequences, as salespeople easily lapse into bad habits.

    Blog written on this topic taken from this video by my mentor Marcus Cauchi and Nick Ayton.

    Peter Jones

    Peter Jones

    Peter Jones is Managing Director of Sandler Training in the East Midlands. Peter works with business owners and MD’s who want to increase their return on investment made in their sales team and business owners who need to improve their business development skills.

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  • Are you tuned-in?

    Don’t we have some great radio? I often think how fortunate we are here in the UK –  it’s one of the things the BBC does fantastically well, commercial radio would never produce some of the stuff we get.

    On Wednesday evening this week I was driving and absentmindedly tuned in to Radio 4, the subject was the Glasgow Art scene  and the lady being interviewed was very fond of the word ‘conversations’. Art in her world was a conversation. Odd, I initially thought, not a word I would have used.

    Hang on a minute

    Now bear with me here – Mulling this over for a few seconds I converted conversation to communication and the fact that what I’d just heard was her attempt at communicating to others this particular concept. The concept was that ‘Art’ was a conversation –  a means of communicating a view on a particular subject – but one that illustrates the problem of communication – it’s actually fraught with risk –  what the sender is trying to say (en-coding) will not be received in the same way by the receiver (de-coding)

    Conversations are the iterative process that qualifies, refines and restates to improve the quality of the communication.   At least that’s what I took away and that may have been nothing to do with what she was trying to say. That’s the beauty of thought provoking radio!

    What do you hear?

    Communication is at the heart of the modern world.  It’s becoming rapidly more complex – email, social media are adding to the mix, yet communicating well is not a skill we generally spend much time learning about.

    Her comments had set me thinking about just how many opportunities we have to mis-communicate, particularly in business – what are the key elements of communication – how many opportunities are there to get it wrong? In sales it’s a minefield yet its vital to ensure we understand what our prospects are saying and that they understand us. So how can we communicate effectively with the people we do business with ?

    Tune-in

    Well before you even speak you look and listen for clues on your prospect’s preferred communication style.  This gives you a better chance of en-coding your message in a way your prospect will be able to de-code.

    You tailor your communication with respect to that and to further understand how they are going to attempt to understand you.  Too often with salespeople, through either laziness or ego, it’s about their preference not the prospects’.

    Permission to speak

    You will also need to get permission to actually have a conversation. Your prospect is expecting a sales message  – if you don’t do what they expect they are likely to be confused.

    You are aware of the things that often prevent that happening – your prospect may short change you on time so you feel time pressure and end up short-circuiting the sales process. Or you fail to establish at the outset what your respective expectations are for their meeting or to discuss what might be acceptable outcomes.

    Subsequently the conversation becomes a game of trying to guess the others agenda- which more often than not results in both sides failing to clearly understand each other.

    Get permission to deal with those issues before they cause problems.

    Become a Conversationalist

    You continuously develop your sales conversational skills and you change the focus of your conversation. For most people their focus is to demonstrate their credibility or earn the approval of their prospect so they are not listening to understand but to impress, listening for their cue to metaphorically jump onto the stage and earn their prospects applause.

    You could say they are present physically but mentally they are not ‘tuned in’. They gloss over potential issues, fail to allow their prospect to work out their questions, often because they believe they have heard something negative and they are worried that it will jeopardise the outcome they want – a ‘Yes’.

    The failure to communicate effectively results in the seller focusing on painting the picture they want their prospect to see – a ‘Features and Benefits’ pitch. The prospect knows it’s not quite what they are looking for, so they try to spot the flaws. They avoid making decisions, they think up objections, they go into hiding.

    Instead, invite your prospect to have an open and honest conversation about the problem they are trying to solve, the money they might be willing to spend and help them work out if and how it’s something they can decide on.

    Gary McKinney

    Gary McKinney

    Gary McKinney runs Sandler Training in Yorkshire, based in Leeds, helping business owners regain control of sales and achieve significantly improved sales results.

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  • That’s not my monkey

    Imagine walking into a prospect’s office and having him or her say, “I have a problem. There is a monkey on my back and I want to make it yours.” Any normal person would know better than to say, “Great, toss that over here and let me add that to the monkeys I am already working with.”

    As a sales coach, I spend time with quite a few people who have big monkey collections. They have accepted that their prospects and clients’ problems are actually theirs. Unfortunately, these monkey collections have some predictable consequences.

    First, a large collection of monkeys generates a higher level of stress because they are not yours. You can’t control their constant chatter and yet, it is often all that you hear. Second, a loud noisy troop of monkeys will keep any salesperson from focusing on the right higher-priority tasks (typically this is the “I do not have time to prospect” excuse). Finally, because of the constant chatter and the lower level of productivity, a large monkey collection will create the perception that the salesperson is ineffective.

    To get out of the monkey bickering business, salespeople need to follow this simple process:

    1) Recognize the Monkey,

    2) Identify its owner.

    3) Define the impact.

    4) Commit to feed or shoot the monkey.

    Not every problem is your problem. It may not be your monkey. Not every problem needs to be fixed. Some monkeys are pets. If your prospect would rather feed his pet monkey than shoot the problem monkey, there really is no sale to be made.

    Blog Editor

    Blog Editor

    Lisette Howlett edits the Sandler UK blog. If you have any questions or would like to submit a blog please contact her. Tel: 020 7484 5556 Email: Lisette.howlett@sandler.com

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  • Do you pay staff commission?

    Paying Commission

    Paying Commission
    Companies paying commission and overtime will need to review their holiday pay arrangements and possibly the way they pay commission.

    Following a European Court of Justice decision and subsequent Employment Appeal Tribunal (EAT) decision in Lock vs British gas Trading, a case that was first heard in 2012, employers will have to pay commission as part of holiday pay. For more details of the case read on here: http://www.personneltoday.com/hr/holiday-pay-case-eat-confirms-employers-must-pay-commission/

    Commission, guaranteed overtime and overtime where an employee may be required to work will have to be included in holiday pay. It will affect staff who normally receive commission and overtime and are paid less when on annual leave. The details of how payments should be calculated have not been decided yet.

    British Gas have requested permission to appeal to the Court of Appeal so that there can be a definitive ruling on the issue so the case is likely to go to Appeal.

    So what should you do in the meantime?

    You can do nothing. You can get legal advice and change your commission and holiday pay structures. You can make financial provision for back pay.  Your lawyers are sure to be providing their clients with a briefing soon – so read it and then decide.

    Ermine Amies

    Ermine Amies

    Ermine Amies runs Sandler Training in East Anglia with monthly Master Classes in Norwich

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