Are ongoing incentives and contests “outside the plan” a good idea?
Contests that create value are generally focused on behavior change, motivating because they’re fun and different…
We’re launching a new product – what’s the right compensation arrangement for the first year?
While putting incentives in place to reward sales people for their important contribution to the successful launch of a new product is smart, there are a lot of ways to get it wrong.
Are SPIFFs a good idea?
SPIFFs are a valuable tool in the sales compensation toolkit, but can be mis-used to the point that the SPIFFs seem to be in charge rather than sales management. Excessive SPIFF use is a clear sign that the core comp plan is not working as it should.
What is considered “best practice” with regard to payout eligibility and employment status re: incentives and contests/SPIFFs?
My answer is different for contests and SPIFFs than for core incentive components. For core components, give some thought to what you’re trying to accomplish with your eligibility requirements…