To gain insight into how rewards and motivation are handled
in one area of a business I support, I spoke with Garrett Ford, sales director
for Disney Cruise Line. In addition to overseeing group sales for DCL, Garrett
is responsible for the team of onboard sales managers, those crew members whose
goal is to drive future cruise bookings while guests are enjoying a cruise
vacation.
Can you briefly
describe the way onboard sales managers are incentivized?
For onboard sales, the way we incentivize them is based on
total volume in a quarter. It’s a cash compensation reward. The view in a
company like ours is that their compensation should mainly be held in their
fixed compensation weekly, and the variable’s not much. The reason for that is
that we want them to be exhibiting the right behaviors. We pay them a salary to
exhibit the right behaviors and then based on volume of sales that they have,
they can earn a small bonus for each week.
How do you align the
individual incentives with the company’s objectives?
You start at the top and figure out what the overall goal
is. Sometimes there’s a disconnect as you move further down the ladder, but
what you truly want to do is make sure the overall goals are being satisfied at
each level of the company. You’re also evaluating that what they’re doing is
that which is in their control. You don’t want to be paying them for something
they don’t have an influence on.
How do you balance
developing a culture where employees are intrinsically motivated with the
extrinsic motivation found in compensation?
That’s a great question. The first thing you want to do is
find people who are intrinsically motivated by their core beliefs and then when
you add the second factor to it, it should give you a great return. On the flip
side, if you miss that alignment and have people who are motivated by the
extrinsic factors, that’s when you start to see the wrong behaviors delivered.
What other forms of
motivation do you use for the onboard sales managers?
The more important thing is figuring out what it is that
motivates them individually. It’s been my experience that cash compensation
will only take you to a certain point. I’m not exactly sure what that number
is, but once that point is hit, there are other factors. I think Maslow’s
hierarchy of needs explains a lot of this. Factors like days off, work-life
balance, respect and dignity, these are huge. You have to figure out what this
individual wants and then cater your style to that as a leader.
What changes do you
see in terms of incentives and motivation as the workforce gets younger?
You’ve got to look at what their wants, needs and desires
are, and when you look toward the millennial generation, respect seems to play
a big role; individual choice; allowing them to be who they are in the
workplace. They’re not necessarily defined by cash compensation. They desire
mentoring, tutoring and attention. They are driven less by money and more by
total experience.
This was just a brief conversation, one of many Garrett and
I have had (he was one of my leaders when I worked in sales for a different
Disney division), but the message he conveyed falls in line with the definition
of employee engagement Heymann and Barrera (2010) espoused, of determining how
best to connect the employee’s individual goals with the company. With the
growth of Disney’s cruise business and the increased needs for effective sales,
alignment of leadership to these personal and company objectives will continue
to be crucial.
Heymann,
J. & Barrera, M. (2010). Engaging employees in the company’s profits and
their own, Harvard Business School, 1-28.
Interesting interview, Andrew. I'm curious, what are the intrinsic motivations of an onboard sales person, and does Disney work to inculcate these motivations? Do you think the "small weekly bonuses" are working as extrinsic motivations?
ReplyDeleteWill, I think the intrinsic motivations of an onboard salesperson are a belief in the product, its value and a desire to share this passion with others. I've heard sales (particularly at Disney) described as the transfer of enthusiasm from one person to another, so I think that's got to be there intrinsically, but also I think the intrinsic motivation of someone in this role is to do well and move to bigger and better things, using their performance in the sales role as proof that when given a challenge they can perform. I think Disney does inculcate these motivations, mostly in selecting the right people, and the bonuses really just keep the wheel turning and reinforce the desired sales behaviors.
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