A reader writes, "I did as you suggested
in previous newsletters and ran a sales
contest for my sales staff. Overall it was a
success, but quite by accident I discovered
that one of my top reps cheated by falsifying
their results. Do I terminate this
individual? Do I put them on warning? This
is all over a $150 gift certificate to a
nearby mall. How could they have done this?"
When a salesperson behaves in an unethical
manner, for any reason, it reflects upon
everyone in the entire company and the
transgression is especially upsetting for
those who manage them. If the dishonestly
involves a sales contest, particularly if it
was for a nominal amount of money, it's
insulting.
Inspect What You Expect
Yes, even with sales contests. If you are
asking your sales representatives to perform
certain tasks, whatever they might be, and
you are assigning a value to those tasks, no
matter how modest, you must somehow verify
that the results are accurate and truthful.
So the next time you sponsor a contest, have
a way of auditing the outcome.
Prior Bad Acts
If this salesperson has been in any way
unethical in the past, they must be
terminated immediately. The other sales
representatives may already know or suspect
that this employee has engaged in dubious
practices prior to this infraction. By
keeping them on staff you both sanction their
behavior, and encourage the other sales
representatives to cheat as well. Those on
the staff who would never consider cheating
will be resentful and lose respect for you as
a manager.
First-time Offense
You may feel that their action was totally
out of character and the first and only time
that this sales rep has done anything like
this. If they are a solid producer, you may
want to try and salvage this situation and
retain them as an employee. If this is the
case, when you sit down to meet with them
about the sales contest, ask the following
questions:
- Did you do this?
- Why?
- Are you aware of the risk you took for
$150?
- What impact do you think this has on
others in the organization?
- What would you do if you were a manager
and one of your salespeople did this?
- What do you think the sales staff thinks
I should do?
- How do I know this won't happen again?
- If I do some research, will I find any
other instances of cheating?
- Why shouldn't I fire you?
Let them know that you will consider what
they had to say and meet with them the next
day to tell them what your decision is. Let
their reaction to the conversation help guide
you. Did they acknowledge their wrongdoing?
Did they act embarrassed and seem sincerely
sorry or were they angry and hostile? Did
they blame others? Make excuses? Try and
weasel out of it?
Decision Time
If they admit to what they did, seem
genuinely sorry, and have convinced you that
this was a one-time only truly idiotic
mistake, you may decide to give them another
chance. If you do, lay down the conditions.
- 90 day probationary period
- No participation in any sales contests
during probationary period
- Must be at 110% of quota at the end of
the probationary period
- All of their paperwork will be
periodically audited for the duration of
their employment with your company
- Understand that any future misconduct or
discoveries of past misconduct, for the
length of their employment with you, will
result in immediate dismissal
Be sure and let them know how personally
disappointed you are in their behavior, and
that they will have to work to regain your
trust. Remind them that once a person
damages their reputation, it is not so easy
to build it back up.
Reality Check
Keeping an employee on after a situation like
this is one big roll of the dice. Though
they may
seem truly grateful that you aren't firing
them and appear to be working hard, the
reality is that they also might start looking
for a job the next day. If they are serial
cheaters, they know that you are on to them
and that they won't be likely to get away
with much going forward. For the sales rep
who made a "one time" mistake, the pressure
to perform combined with the damage to their
reputation may prove to be too much.
The whole situation seems ridiculous and sad.
But cheating can never be condoned and needs
to be dealt with seriously. Consider
yourself fortunate that you made this
discovery during a sales contest and not for
a transaction with a new or valued client
that could have seriously damaged your
company's reputation. You now know that this
employee is capable of deceit and you are
forewarned.