Comments on: How is the economic uncertainty affecting pay mix? http://cygnalgroup.com/how-is-the-economic-uncertainty-affecting-pay-mix/ Making your numbers . . . better. Tue, 31 Jan 2012 15:32:04 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Enrique Fernandez - Daza http://cygnalgroup.com/how-is-the-economic-uncertainty-affecting-pay-mix/comment-page-1/#comment-54 Enrique Fernandez - Daza Wed, 09 Jun 2010 17:21:23 +0000 http://cygnalgroup.com/?p=1623#comment-54 This is a very critical issue as economic uncertainty makes every sales rep and the whole sales function less "prominent". This means that the reasons why the revenue target is achieved is more dependent on the aggregate demand and industry outlook than on the skills or work done by any particular sales person. For example if the total number of cars sold in the country diminshes by 30 % due to a recession; it is evident that very few sales rep will make the quota in that market. In order to keep the motivation high, perhaps the right tool is to apply short term adjustments, leaving untouched the paymix. For example a bonus linked to a team action or a general adjustment on the targets. These tricks have the same effect as to raise the take-away pay but cause no obligation for the next commission period. This is a very critical issue as economic uncertainty makes every sales rep and the whole sales function less “prominent”. This means that the reasons why the revenue target is achieved is more dependent on the aggregate demand and industry outlook than on the skills or work done by any particular sales person. For example if the total number of cars sold in the country diminshes by 30 % due to a recession; it is evident that very few sales rep will make the quota in that market.

In order to keep the motivation high, perhaps the right tool is to apply short term adjustments, leaving untouched the paymix. For example a bonus linked to a team action or a general adjustment on the targets. These tricks have the same effect as to raise the take-away pay but cause no obligation for the next commission period.

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