Compensation Planning
Sales compensation is the center of an efficient and thriving sales organization. A plan that has continuity, consistency, is simple to manage, and valuable as a motivating tool is key to sales organization success
There are numerous things that incentive plans can and should do. The most important is to complement, reinforce and advance the company's long and short term goals and objectives. Bearing this in mind, a comprehensive and careful evaluation of the way you approach sales compensation can be invaluable.
Compensation plans vary widely by product, company, industry, and even the type of sale. Yet, there are fundamental principals that effective, productive sales organizations should abide by in order to make certain that their plan is a compelling and encouraging influence within the company. We believe that sales compensation plans should:
• Motivate your sales force to meet both tactical and strategic company goals (e.g. profit, market share, revenue)
• Match or surpass the attractiveness of your competitors' plans.
• Have quantifiable criteria that are appropriate, impartial and concrete.
• Be simple to administer and understand yet flexible enough to exhibit the realities of your business.
• Be openly communicated to all employees.
• Be coupled with overall performance, not just sales results.
• Value the salespersons' efforts according to their worth to the company.
• Motivate all salespeople, from top achievers to poor performers.
How can the KOSA Consulting Group Help Your Organization?
Whether your pay plans require a tune-up, an update, or a major overhaul, KOSA Consulting Group can devise an incentive plan that maximizes sales team performance.
We meet with management and with members of the sales team, and will assess and evaluate your current plan. Once we've completed our assessment we will meet with you and review our findings and the reasoning behind them.
After we have jointly agreed on the actions and direction needed we then formulate a new plan for consideration, design and structure the new plan, and assist you in implementing the plan
How Does This Benefit Your Company?
Hiring and training quality salespeople will only help your organization if you can make sure that you retain them. When a company focuses on sales compensation and takes steps to "do it right", it can serve to make sure that company goals are met, eliminate confusion amongst the sales team, prioritize and focus effort, increase moral, attract more qualified candidates, and help reduce turnover.
Compensation plans should align your business priorities to your sales force. A well thought out sales compensation program should be a positive force within your sales group.
The best sales organizations use the right sales compensation plans to spur performance and drive business results.