Ask a Question
Transportation and Logistics
Why is it important to set Target Total Compensation for a role?
Target Total Compensation (TTC) is the amount of pay that a role (not a person) is expected to earn at 100% of expected performance. This number is absolutely essential to developing sound compensation plans. Without it you will not know who is doing better than expected and who is doing worse. Compared to what?
Why should I pay incentives to my employees when the company has not hit its overall goal?
This is a common question, especially for smaller companies, whose resources are limited. It’s certainly understandable for a manager to want to develop an incentive plan that only pays out of the company profits (if there are any).
Communicating to Sales Professionals
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.”
Keys to Success: Six Areas to Address in Your Next Sales Compensation Plan
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.
Why would I pay incentives to sales reps when the overall company is not hitting its goals?
Making Your Numbers…Better Newsletter, September 2010 – Should you pay incentives to sales people if your company is not hitting its overall goals? Yes, if that incentive pay makes up more than just a token year-end bonus.
Looking Ahead: Should We Make a Change?
Sales Compensation Focus, July 2010 – The economy appears to have taken a positive turn and many companies are starting to think about growth: hiring more sales reps, launching a new product, or breaking into a new market segment. One of the first questions that is raised when a company returns to growth mode, especially if there has been significant retrenching, is, “What should we do with our sales compensation plans?”
The four watch words for developing a good incentive program
There are 4 watch-words for developing a good incentive program: Relevant, Controllable, Measurable, and Objective.
Incentive Plans Must be Well-Documented to Prevent Costly Confusion
The Logistics Journal, March 2010 – The joke goes that the majority of incentive plans are drawn up by the company president and sales director hastily over cocktails and written on a napkin. While most incentive compensation plans have a bit more thought put into them than this…
Linking Performance Management and Incentive Pay
WorldatWork Sales Compensation Quarterly, Q2 2009 — Incentive Pay and performance management are often managed by different parts of an organization without much thought given to how performance management can work with incentives to increase sales force performance…
First Step of Sales Comp Planning: Define Roles
WorldatWork Sales Compensation Quarterly, Q3 2008 — “Why isn’t my incentive plan getting me the growth I need” is a common lament from the the VP of Sales to the President to the CEO. One of the main reasons may not have anything to do with your compensation plans, but may be more about the way your sales roles are defined…