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Linking Qualitative Performance to Pay through the Sales Incentive Plan

In recent years, changing business conditions in some commercial markets involve complex, long sales cycles and require the integration of products and services to deliver solutions that are valued by customers.  When confronted with such situations, executives and sales leaders look for ways to assess performance at key milestones in the sales process and, reward for such accomplishments even when the financial results may be modest or non-existent.  Typically, these milestones or outcomes are referred to as key sales objectives (KSO) and provide the sales person with an opportunity to earn a portion of target incentive pay based on achieving one or more KSO.  If you are faced with the challenge of helping management determine how to best incorporate a KSO metric into the sales incentive compensation plan, our recent WorldatWork article may be helpful to you: