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“Red Zone” Advise for FY 2015 Sales Compensation Plans
WorldatWork’s Jim Fickess recently reported on the challenges associated with tailoring sales compensation plans to attract, motivate and retain salespeople in 2015 and beyond (“Experts Explain How Sales is Changing . . . And Why You Better Change With It!”). With that thought in mind, there are three topics that we suggest sales compensation plan designers revisit as they move into the “red zone” for finalizing 2015 plans.
- As the Fickess’ article indicates, sales role are constantly changing. Such change often leads to this question: “What is the right salary/incentive ratio for the new sales roles”? For advice and an applicable tool to use in answering this question in your company, see our article “Setting Pay Mix for New or Changed Sales Roles.”
- Because many companies are focused on accelerating business growth as they move into 2015, there is interest in providing the salesforce with appropriate incentives to get off to a “fast start”. For business situations that are right for a “fast start” sales incentive and techniques to use when designing them, see one of our classic articles, “Gaining a Motivational Edge through a Fast Start Sales Incentive”.
- Finally, as companies continue to efforts to align their sales compensation plans with business strategy, we believe that profitability measures will command top management’s attention. To learn how companies take action to include profit measures in their plans, see both our recent Article and Slide Presentation.
We hope that you find these suggestions and the accomplishing references useful.