Has your sales compensation plan kept pace with the ever-changing marketplace?
Typically, the first sign that your company’s sales compensation system is out of balance is that sales are stalled or declining. If this sounds like your company, you’re not alone.
What are some common indicators that your sales compensation plan may be failing or is in dire need of a tune up? I’ve listed the Top 5 below. If you’re experiencing at least one of these indicators, it is time to evaluate your sales plan:
1. Jumping Ship – A top sales performer has left for a sales opportunity at another company, and/or you have low performing salespeople (their sales are declining or staying the same) who are probably “hanging on” – because they’re happy being order takers with a steady paycheck.
2. Confusion – One or more of your sales people have expressed confusion about how to earn incentive and where to focus their time.
3. Not Keeping Pace With Market – Your company hasn’t done a recent “temperature check” to determine what the market is paying salespeople. Therefore, you’re unsure what a competitive salary/commission structure is for sales people in your market – not just in your industry, but in a variety of industries. You’ve not kept pace with what your company pays in comparison to the general market. You’ve not clarified if you want your company to be a market leader, pay the same as the market or be a market straggler. These days, your competitors are hiring great sales people even when they don’t have specific industry experience – you want to compete for that top talent.
4. No Job Descriptions – Your sales rep roles don’t have job descriptions, the descriptions have not been evaluated for more than a year, or there are no job descriptions. Not knowing what your sales role is today makes it impossible to know what to pay.
5. Inadequate Management – You are trying to manage compensation by giving this critical strategic work to employees who don’t have expertise in sales plan compensation. You would not go to a general practitioner if you needed knee surgery. Getting the right help from sales compensation experts is key – they are in tune with what works in your market and in like markets. They know how to jump start your revenue and to attract and retain the best sales people!
If your company’s sales compensation plan has any one of these issues, it’s a good idea to fix the problem(s) as soon as possible. By doing so, you’ll be on the road to developing a happy, productive sales team; and as a result, your revenue will grow! Our Advisors can help. Click here to connect with a Sales Xceleration Advisor in your area, or contact us today at 1.844.874.7253.