Sales Compensation and Sales Incentive Plans

For many, sales compensation and incentives are either casual bonuses paid in good times or schemes that are increasingly complex and often fail to strike the right outcomes. For some the reward is a commission percentage on sales with no parameters in an attempt to push sales but in reality, costing companies’ excessive profit. For product companies, plans can be complex to measure, manage, and reward, with the negative effect of teams losing confidence and disengaging. Simplification and streamlining of incentive plans and measurements are critical for them to add value to your company and deliver measurable improvements. Compensation packages must be linked to the overall business strategy and define the quality of talent. In today’s market, your plans will underpin your company’s ability to attract top talent, motivate appropriate performance, and create an alignment with business imperatives. The mistake most often seen is people overpaying talent in an attempt to lure them over and the longer-term cost is unjustifiable.