New Reward Structure at Bruynzeel Kitchens

Reason enough for the kitchen supplier to drastically change its pricing policy and from April 2018 to deploy fixed prices, where negotiation is no longer necessary. This also meant a change in the way salespeople are sold and rewarded. 'It's about good contact with the customer, the salesperson has to show his added value,' said HR director Caesar Kuipers.

How does the salesperson demonstrate that added value? By being an advisor first and foremost, says Kuipers: 'Our salespeople have become more of a coach for the customer. Where before they were mainly busy scoring themselves, now they help the customer to score a good product.' First and foremost is the functionality of the kitchen, or as the internal slogan goes, "a kitchen that works. As an example, Kuipers cites the layout of the kitchen, "We work with zones. If you're right-handed, it's handy if the refrigerator is on the left. You open it with the left and grab the produce with the right, which requires more fine motor skills. Then you wash the vegetables in the sink and next to it is the work surface for cutting. For more efficiency you work from left to right this way.' Such considerations are not addressed at the average kitchen store, according to Kuipers.

The advisor looks at the customer's situation and advises on a kitchen that fits that completely. 'For example, if you have a family with three children and do all the shopping once a week, you have a different need for storage space than if you are alone and often eat out,' Kuipers said. 'Those are things our advisors look out for.'

With such a new way of selling also comes a different remuneration structure. 'The old variable remuneration was focused on the margin left on a kitchen sold. Now we reward good service. That requires a simple remuneration structure with a larger fixed part and a somewhat more limited variable part," Kuipers said. Getting rid of the bonus altogether has never been an option. 'No, that little bit extra is just part of the sales profession. But no extremes, the variable part will never be more than 10 or 15 percent of the fixed salary.'

The different compensation structure for the salespeople was designed in consultation with Lianne Hamstra. Together with several Hamstra & Partners colleagues, she has been involved in the project for two years. Mainly as inspiration, the HR director explains. 'We talked about what behavior we want to reward and what behavior we don't want to reward, what the experiences in the market are, the trends and possibilities.' They have now held three inspiration sessions, at the Utrecht office of Hamstra & Partners. 'Literally with their feet on the table,' says Kuipers. Bruynzeel's commercial managers were also there. 'Nice to see how Lianne takes on that role of inspiration and leaves the execution to us. It is of course tempting to put the entire process down to her, but by involving our managers as well, we create more support in the organization.'

That support is there, as evidenced by the smooth introduction of the new commission scheme for salespeople. Kuipers: 'I have been working here for thirteen years and have never experienced that everyone was so positive about it at once.' This is also due to the transparency and simplicity of the new system. 'Previously, we always had whole discussions about commissions that would not have been calculated properly, criteria and kpi's. The day after the payout, our administrator was called flat out. With the introduction of the new remuneration structure, that was over within a month. Your variable pay is now so calculable on a beer mat.' Every salesperson in the Bruynzeel store has the same sales target. If he achieves 80 percent of that, he gets an extra 0.4 percent of sales, 100 percent is 0.6 percent and 120 percent is 1 percent. Very simple.

He or she. Remarkably, the female salespeople at Bruynzeel, about a quarter of all sales colleagues, have performed demonstrably better since the new sales strategy was introduced. In one year, they are in the top 20 top salespeople much more often than before. Kuipers does have an idea why. 'Men are generally more rational and sales-oriented. With the new strategy we focus more strongly on building a bond with the customer. That emotional aspect suits women very well.'

A next step in the new way of working is a different, entrepreneurial role for the store manager. “We are bringing more tasks and responsibilities back to the store,” Kuipers says. That means the manager will have more influence over staffing, the assortment in the store and how to sell the products. To encourage that entrepreneurship, the organization is also going to adjust variable pay for these employees. The managers are currently in the middle of an intensive training program that will last until the end of the year, in order to master the new way of working. As early as this summer, Kuipers will be discussing with them the appropriate remuneration. 'At the moment they receive variable remuneration over which they themselves have no influence. That will change if they are given more responsibility for the business and therefore also for the turnover. How they can best benefit from this is something we are putting to them. With that input, Kuipers then sits down with Lianne and colleagues to develop a plan.

A Creative Perk: A recent addition at Bruynzeel is a points-based reward system that allows employees to shop in an online store filled with gadgets, travel gear, personal care items, and even fun day trips. The idea came from Lianne Hamstra. “A tangible reward like this can sometimes be even more motivating than money,” she suggested.

DKG keeps it modest: top performers can earn up to €100 worth of points per month. But employees love it, says HR Director Caesar Kuipers. “If you use the points to buy gifts or, say, tickets to the Efteling, your family gets to enjoy the reward too. That’s important, especially since we often ask our staff to work on public holidays. Those moments are less fun for their families, so it’s nice to offer something in return.”

And the best part? The system doesn’t cost DKG anything. It’s funded by the company’s suppliers. “When we run a promotion with a supplier to boost sales of their products, they pay for the points awarded to the salespeople who sell those products,” explains Kuipers.

A win-win solution, for employees, the company, and its partners.