In today’s competitive senior living market, motivating salespeople is a challenge that can’t be ignored. At the 2024 LeadingAge Annual Meeting, Creating Results led a panel discussion on how to meet this challenge head on.
What the audience learned: Sales leaders need to be more than just managers — they need to inspire, engage and lead by example. Whether you’re hiring new salespeople, refining compensation strategies or finding ways to retain top talent, your approach will determine your senior living sales team’s success.
1. Hire for fit and culture: Building the right team
Recruiting for a senior living sales team can be tough, especially in a small industry where the candidate pool may seem limited. Expanding beyond the traditional boundaries of senior living experience is often necessary, but it’s crucial to hire for fit and culture.
When considering candidates from outside senior living, look for attributes that can’t be easily taught. You can train someone on how to manage a CRM system or leverage marketing campaigns, but you can’t teach them to be relatable, compassionate or professional —key skills since salespeople need to be able to earn trust quickly when working with potential residents and their families. Think about who will bring a fresh spark to your team dynamic and who will contribute to a supportive, collaborative atmosphere.
Keep in mind that sales experience matters, but not all sales experience translates well to senior living sales. Salespeople who have been successful with quick, transactional sales might struggle with the more complex, relationship-driven nature of senior living sales. Look for candidates who have succeeded in long sales cycles that require ongoing nurturing. By focusing on cultural fit and inherent traits, you’ll set your team up for long-term success.
2. Compensation: Balancing base salary and at-risk pay
One of the most common questions clients ask about motivating salespeople is, “How do we structure compensation?” Should it be a solid base salary, or should you include at-risk compensation, like commissions and bonuses? The answer is both but with thoughtful consideration based on your community’s needs.
In senior living, the sales process can be lengthy, especially with blue-sky sales where residents won’t be moving in right away. In these environments, higher base salaries may be necessary. However, at-risk compensation remains important because it motivates salespeople to push for results. Commissions and bonuses can be multi-faceted and tied to individual sales, team sales volume and overall occupancy rates (once move-ins begin). Team goals reward the sales team for collaborating and helping each other, minimizing unhealthy competition or territorial behaviors.
If you’re selling an established community, especially if occupancy is good (read: too little inventory for individual sales commissions to be significant), you’ll likely need to transition to commissions based on conversion rates or maintaining a specific occupancy or waitlist. Think about your organization’s specific goals and plans for the future to ensure the actions you’re incentivizing are aligned with your business goals.
If you’re offering incentives based on activities — like the number of calls or appointments — be sure they make sense for your team’s dynamics. For example, salespeople with high conversion rates shouldn’t be penalized if they close sales with fewer interactions. Balance is key, and you’ll want to adjust the model as the market or community lifecycle changes.
While some may find it controversial, total compensation for sales personnel may end up being higher even than other leaders in the organization. Keep in mind that their compensation, when well designed, is directly aligned with the revenue they’re driving for the organization, which in turn increases leadership compensation as well. The organization cannot succeed without sales success.
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See how we helped one community make more sales in 60 days than they did in the previous 8 months.
3. Retention: Building a supportive, winning culture
Even the best compensation package won’t keep your sales team performing if the work environment is demotivating. Retention is about more than just pay — your salespeople need to feel supported, valued and part of a winning team.
Motivating salespeople also means giving them the tools and resources they need to succeed. No one wants to feel like they’re fighting an uphill battle with red tape or a lack of support. Sales leaders need to advocate for their teams, ensuring they have the flexibility to make decisions and the backing of the organization. When your team knows they can rely on you, they’ll be more motivated to give their best.
Aim to create a culture that prioritizes team success over individual wins — including those who indirectly contribute to a sale like assistants or move-in coordinators. When the entire team shares in incentives, it fosters collaboration and support. This culture is particularly important in senior living, where a smooth, seamless experience for potential residents often depends on teamwork across departments. Encourage your sales team to build relationships with other departments, from finance to maintenance. This cross-departmental dynamic ensures that everyone understands their role in the sales process and can contribute to a positive outcome.
Finally, don’t be afraid to “lose fast” if someone isn’t the right fit — that goes for new team members as well as newly inherited ones. Keeping a team member who isn’t aligned with the culture you’re creating can lead to toxicity, which risks losing your top talent. By making decisive moves, you can maintain a positive, motivated team dynamic.
Leading and motivating your senior living sales team to success
Motivating salespeople in the senior living industry is about more than just driving numbers. It’s about creating a culture where each team member feels valued, supported, and inspired to contribute their best. By focusing on hiring the right people, implementing a balanced compensation strategy, and fostering a supportive environment, you’ll be well-equipped to lead a successful, high-performing sales team.
When you get that balance right, you’ll see the results in your community’s occupancy rates and, most importantly, in the satisfaction of the residents you serve.
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