Sales Compensation & Incentive Design

Sales compensation creates the critical link between the sales strategy and front line performance. It’s the single biggest expense for most organizations with the motivational power to move financial mountains, but many executives squander the opportunity sales compensation presents. For senior executives, the impact of the compensation plan on the sales organization is one of the most important factors in reaching the company’s revenue and profit goals. The compensation plan directly guides the efforts of the sales organization. It trumps leadership messages, sales strategies, sales management, and sales training. The sales organization will move where the compensation leads.

From the CEO to management, sales compensation has long been a point of conflict in the organization. Everyone has an opinion, yet few agree on the best approach to drive performance. Sales, Sales Operations, Human Resources, and Finance regularly engage in battles on questions like:

• Is the plan too expensive?

• How should the plan represent our business objectives?

• How can we better motivate our organization to pursue the sales strategy?

• Are we paying our top sales people enough?

• Can we make the plan simpler to understand?

• Can we make the plan easier to administer?

• How can we set quotas so we’re not penalizing our best reps?

Too often these battles lead to sales compensation programs that are compromises between parties, ultimately sending mixed messages to the organization and accepting underperformance in the business.

SalesGlobe uses a proven Sales Compensation Design Process, a best practice approach developed over hundreds of sales compensation programs, that considers each of the major sales compensation elements to rigorously evaluate and design your program. The process -- from sales role definition to structuring upside for top performers to setting motivational quotas -- incorporates best practices that have been designed for hundreds of companies across industries.

SalesGlobe can help your organization plan, design, and implement incentive compensation and quota programs that align to your business objectives. Contact us to get started.