Health Check for Your Sales Compensation Plan
Is Your Sales Compensation Program in Optimal Shape?
Every sales compensation manager wants a compensation plan that motivates top performers, provides equal earning opportunities, and helps the company achieve its sales target. Yet by the time many companies find deficiencies in their sales compensation programs, it's too late.
Sales compensation managers can reap great benefits from a program health check that monitors the three key components of a sales comp plan:
1) The Plan Design – Is it properly aligned with your organization’s sales strategy? Does it motivate the sales force and provide equal opportunities for earning? Does it make compensation costs predictable and in line with company and product/service performance?
2) Plan Communication – Does the management team possess the knowledge and resources to routinely answer field inquiries about compensation? Does the sales force understand how the compensation plan works, and are they excited by it?
3) Plan Operations – Is the current process prone to errors? Is the time between performance achieved and performance compensated short enough to keep sales force morale high and fuel the desire for higher performance?
Sample Output:
To determine the performance of a company’s sales compensation program, we interview key stakeholders, gather data and conduct surveys. We then provide a report card with key metrics of importance to the compensation group, HR and sales management. We also compare how a sales compensation program is performing against industry benchmarks. Finally, we furnish the detail necessary to understand the scores, possible implications and recommendations on how to address any performance issues.
Learn more about how we help companies diagnose the health of their sales compensation programs.