Seven signs your sales comp plans could be doing more for your business
1. Do your sales people appear to be “coasting”?
Are they too comfortable with a level of performance that’s not acceptable to the business?
2. Are your sales people acting like teenagers?
Are they unpredictable independent operators more focused on their own self-interest than what’s good for customers and the business?
3. Are your sales people selling – but not the right stuff?
Are they pricing too low, or selling the old offerings they’re comfortable with and ignoring important new company offerings?
4. Are your sales people confused about their sales comp plans?
Do they have trouble understanding how their payouts relate to their results? Are there too many questions or disputes about the sales commission payout each pay cycle?
5. Are your “keepers” leaving?
Are they citing comp as one of the main reasons?
6. Are you having trouble hiring top talent?
Do the people you want to hire express concerns about their ability to earn what they know they could earn elsewhere?
7. Are your sales comp costs going up?
And are they going up faster than your profits? Is there concern over the cost of comp as it relates to value created?
We can help
Spend 10 minutes with a Cygnal Group consultant, and you will see that they are outstanding compensation specialists. I am glad to recommend them without hesitation. They have been on retainer for almost two years (so far) and during this time, they have provided timely support when needed, and helped us through two major incentive compensation changes. They are professional, nice people, fun and experts in their field.
Our Cygnal consultants are among the very best Compensation professionals I have ever worked with. They love their work and always have the client’s best interest at heart. SALES COMP is their thing and they know it inside-out.
The Cygnal Group consultants have excellent project management and client management skills. They are professional and task oriented but with a great sense of perspective and the ability to quickly make realistic assessments of client issues. They are very effective communicators, and great listeners.
Latest posts in our library of
In putting together a pay structure for a sales team, the first step is to establish the right total cash compensation for the role. The next step is to decide how much goes into the base pay (/salary), and how much into the variable incentive pay at target. The main determinants of pay mix are market practice and sales role prominence.read more
It’s usually important to have the sales executive measured similarly to their sales team. So if the sales team’s primary measure is Revenue, then the sales executive should also have significant variable pay based on Revenue. But it’s also reasonable to hold the sales executive accountable for measures directly influenced by…read more
Check out this practical session that will provide a grounding in best practices for sales compensation plan design in a recurring revenue business. We look at the best primary measures of sales performance, and the necessary secondary measure. We consider common mis-steps in these plans…read more
Donya Rose was interviewed by David Johnston on behalf of the Canadian Professional Sales Association. In this 15 minute podcast, Donya provides helpful tips and best practices on a number of topics across sales compensation plan design.read more
A/R metrics in sales compensation plans are relatively rare. There is often an impulse to include them from Finance, but in the end the sales leadership usually manages to impress upon Finance the importance of freeing sales people to sell and letting a lower cost...read more
Carol Katarsky recently wrote an article summarizing sales comp basics for tED Magazine, a leading trade journal for the electrical distribution industry. In the article, she breaks down best practices into three big chunks: Clarify the business goals Design for the...read more