Blog

Blog Posts by Month



Connecting Profitability to Your Company’s Sales Incentive Plan

We cannot remember a time when companies were not interested in rewarding the sales force for profitable sales results.   We track actions companies take to include profit oriented measures in their sales compensation plans. Here’s a snap shot of findings about company practice that we find encouraging:

  • WorldatWork’s 2012 edition of Sales Compensation Practices for the High Tech Industry reported that more than three out of four surveyed companies use some incentive method to encourage their sales force to sell products at a high price point.
  • CSO Insights reported that 37% of companies in their Sales Compensation Programs and Practices survey expected their sales incentive plan to motivate and reward their sales people for: 1) selling higher margin products; and, 2) avoiding discounting, or both.
  • In a survey of 90 companies conducted last year, KJR Associates reported that 33% of the respondents were holding internal discussions about adding a profit component to their sales compensation plans.

With that background in mind, when Proformative, the largest on-line network of finance professionals, asked us to conduct a webinar sponsored by Xactly on the topic of how to better align sales compensation to profitable revenue growth, we thought such a session is timely and would be of interest to not only finance executives but also to HR/compensation professionals.   Our October 9, 2014 webinar will enable participants to:

  • Understand the types of profit measures that should be considered and adopted in reference to the three common business goals associated with improvement in profitability.
  • See examples of the architecture of effective, profit oriented incentive designs relative to three common business goals for jobs that typically measured this way.
  • Learn about key decision criteria that are associated with profitability to determine if implementing these changes would be right for your company.

There is no charge for this webinar. If you would like to participate, you can enroll at: Webinar Registration