Sales Compensation Effectiveness

Sales force turnover? Incentive plans that don’t inspire results? Sales force effectiveness issues have many root causes that can go beyond compensation plan design.

How do I know when my sales compensation plan needs to be revised or completely redesigned?

  • High Turnover: When you have high turnover of top performing sales team members is usually a good sign that your sales compensation plan should be revised or redesigned. Top performing sales people want to understand how their efforts drive organizational success and see how they will be paid for their results.
  • Organizational Change: Organizations go through transformation and change due to organic growth, changes in internal business processes, or as a result of mergers and acquisitions. These organizational changes typically result in change to the nature of sales roles and relationships. A review of the underlying mechanics of the sales compensation plan is usually required due to changing metrics or emphasis, and particularly to incorporate the degree of accountability for the achievement of results.

What will my organization receive throughout this project?

  • Comprehensive Review: ERC will assess the effectiveness of your current sales compensation plan by conducting a comprehensive review including an analysis of your financial or other plan metrics, analysis of current and past plan payouts versus performance, and assessment of linkage between plan design and the achievement of plan objectives.
  • Stakeholder Interviews: ERC’s process includes personal interviews with key stakeholders and a written assessment of findings and recommendations.
  • Comprehensive Analysis: Comprehensive analysis of financial or other metrics under consideration, and recommended alternative performance measures.
  • Variable Pay Program Design: Specific sales compensation plan revisions or new plan design alternatives including rationale and financial analysis will be provided, along with implementation requirements and recommendations.
  • Summary Plan: Detailed summary plan document including summary plan provisions, plan mechanics, definition of terms, examples, and often forgotten best practice legal and plan governance provisions.

Contact ERC to Get Started

Contact us about your interest in compensation and benefits consulting for your organization.