Nowhere is the adage that compensation drives behavior more true than with a quota carrying sales person. It is critical that your compensation plan provides the right balance of base pay and incentives to ensure that you are rewarding the behaviors that you hope to motivate. Your sales team is your company’s primary face to your customers. An underleveraged plan may not provide enough incentive to recruit and retain top performers, but an over leveraged plan may promote more aggressive behavior than you were really hoping for.
Sales compensation plans must be documented and there must be a clear understanding between management and the sales team; ambiguity begets distrust which can be disastrous for a sales team. Compensation plans must be finalized and available at the beginning of the period over which their performance is being measured (typically the start of the fiscal year). Failure to have compensation plans implemented on time can cause lost productivity, and will erode the trust between the sales force and its management team.
Our team has collectively developed, implemented and been incentivized by dozens of compensation structures and can help you to develop the plan the fits your business best.