Compensation plans that motivate sales reps to stay, grow and contribute to the team.
Sales compensation plans are the proverbial “carrots” that motivate sales teams. Done correctly, they empower teams to perform at optimal levels. Yet when done poorly, they become a source of frustration, create turnover and lead to lack of effort. We help clients wade through these difficult waters and come up with a comprehensive compensation strategy that keeps sales teams motivated to excel and drives results.
Aligning sales compensation with corporate objectives
We engage in careful examination of client goals, while giving due consideration to the phase of growth and team capabilities to come up with a strategy that maximizes long-term revenue. Our approach looks to create a strong fit between a company’s offering and the people hired to drive sales. This ensures proper alignment between what motivates the sales team and what drives an organization’s goals.
Sales compensation benchmarking
Laying down the foundation of a successful sales compensation plan begins internally by defining standards of pay and performance. The next step is understanding the competitive landscape and ensuring the pay offered can attract and retain top talent.The benefit of a competitive compensation assessment is that companies can boost sales compensation effectiveness while identifying the red flags in existing pay plans.
Incentive and commission plan formulation
Standard sales commission structures may range from revenue, gross margin, tiered commissions, multiplier plans and commission-only plans. Choosing the right approach requires evaluating many factors. We help clients determine the proper commission structure that rewards the efforts of the sales team and, more importantly, recognizes achievements.