Jennifer Frei of Towers Watson Singapore has put together a terrific piece for the HR folks out there who want a “seat at the table” for sales compensation.
Many companies actively involve HR in the sales compensation design process to leverage their unique perspectives and skills. In the current economic environment, the need for HR involvement in planning a game changing sales compensation plan is more pronounced, as the pressures on the sales organisation can translate into talent management (e.g. retention and engagement) challenges. Even so, not all sales organisations actively engage HR in the process. Typical reasons given include lack of understanding of “business of sales” (channels, processes and jobs) and lack of understanding of how to involve HR and the value of doing so.
To overcome these and other common objections and partner effectively with sales, HR needs to be able to do several things to “earn a seat at the table”.
Donya Rose, CSCP, is Managing Principal of The Cygnal Group. She is a recognized expert in sales compensation plan design, regularly speaking at conferences and writing published articles. She serves clients from F500 to growth-stage businesses, and advises WorldatWork on sales compensation hot topics and best practices.