For example, if a compensation plan has no controls in place to avoid selling to unqualified prospects, customer churn might increase; sales reps may close a number of deals with prospects who are bad fits for the product, just so they can earn their maximum commission.
pay to employees
creating an effective compensation structure is only the beginning. It’s equally important to communicate your compensation structure to employees.
Too many organizations spend
Time and resources building their plans. But fall short when it comes to clearly. Communicating the details and logic behind these plans to their reps. The lack of. A communication strategy is a fatal flaw that. Can render even the most nuanced. Compensation plans useless.
When reps have to do the heavy lifting to figure bahamas telegram number database out their compensation plan, they have less time to spend on sales activities. This confusion hinders productivity and undermines the primary goal of incentive compensation – motivating employees.
The only remedy is a formal incentive communication strategy. Developing a communication process for sales compensation can improve employee satisfaction, boost data based pay transparency, and relieve your reps of a massive administrative burden. Here are a few steps we recommend taking:
document your current sales
compensation process.
Outline a thorough communication plan for each step of the process.
Document your compensation process’s purpose and creates accountability expectations clearly.
Test your communication tactics, collect feedback, and improve processes as you go.
Statistics and facts about at-risk pay
for context, here is some of the latest research related to at-risk pay and incentive compensation.
74% of organizations said their annual incentive plan was “moderate to effective” in achieving its objectives.
90% of top-performing companies use incentive programs to reward their sales associates.
Properly structured incentive programs can increase employee performance by 44%.