Managing sales compensation in 2021 will require collaboration across disciplines, a willingness to make assumptions and adjust later, and an agile sales and compensation management process.
With little understanding of the extent and duration of the unfolding situation, how should sales compensation plans be adjusted, and when?
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).
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?”
Start by thinking about sales prominence. Has it changed? Do the sales people have more control over their own success, or less?