by Beth Carroll, Managing Principal, Cygnal TLC We are often asked “what is ‘the right way’ to pay?” but there is no easy answer to this question. The “right way” depends on a variety of factors particular to each company. There are some definite wrong ways to pay, and this three-part article will outline the …
Many sales leaders and CFOs believe paying company sales representatives as if they were agents (100 percent variable pay) strengthens alignment between a company’s objectives and sales representatives’ focus and results; however, the absence of a base salary often has an adverse effect with significant unintended consequences: Lack of Control, Complacency, and Limited Flexibility.
DESIGNING EFFECTIVE SALES COMPENSATION IS AN ART. When done well, it enables companies to develop the right mix of individual motivation and teamwork while balancing the needs for both short-term financial gain and long-term strategic positioning.
Developing compensation plans for an organization is a bit like cooking up a gourmet meal for a group of people with very particular tastes.
WorkSpan Magazine, February, 2011 – Selling Your Sales Compensation Plan to Management Learn how to prevent last-minute derailment of your sales compensation design effort, and make sure your plan designs reflect the top priorities of your most influential stakeholders.
AMEX Inside Edge, October 19, 2010 The sales staff at DealerTrack wasn’t sold on how they were being paid.
The Lake Success, New York, maker of software for auto dealers had done several acquisitions. Now management wanted the combined sales force to push a new product, an all-in-one management program that could replace stand-alone applications for inventory management, leasing and the like, to the company’s 17,000 auto-dealer customers.
Sales Compensation Quarterly, November 8, 2009 – Communicating changing sales compensation plans is never easy. The salesforce will always start with the assumption that the new plan is going to take something away from them, and will be skeptical of anything the company tries to push as a “positive change.”
Workspan, August 27, 2010 — It’s fall again, the economy appears to have shifted toward the positive in many sectors, and companies are thinking about redesigning their sales compensation plans for 2011. In order to ensure the redesign process and resulting plans will provide a good return, businesses should address six key areas.
Logistics Journal, April and May 2010 – Good news and bad news: incentive plans work! So how do you design your incentive plan so you don’t end up with some unexpected consequences?