Design Sales Compensation That Works
Sales compensation is a key driver in motivating, attracting and retaining superior sales talent. However, this key management tool is often a point of dissatisfaction for both management and the sales force. Effective, motivational sales compensation plans are built around four essential elements:
- clear company goals
- demanding but achievable sales goals
- simplicity
- clear, consistent communications about the plan.
Create a Sales Compensation Plan That is:
Built to Drive Company Results: The plan will be built to pay for obtaining the company’s most critical goals.
A Clear Plan Everyone Understands: The completed compensation document will clearly spell out how each participant is paid and under what conditions. It will contain an overview and specific examples for ease of understanding.
Simple, Easy to Administer: Care will be taken to understand the capabilities of your accounting and commission systems and develop a plan that can be readily administered using those systems.
Proven to Pay as Expected: Each potential plan will be “modeled out” so you will know how it will pay before you implement it.
Seen as Equitable by the Participants: Plan participants will be surveyed to gain their perspective. Their responses will be considered in plan development.
Tailored to Your Sales Environment: Key factors such as length of sales cycle, new v. established business, sales cycle complexity competitor pay practices will be considered during plan development.
