Below is a listing of the services most frequently provided to clients
seeking to develop new sales compensation programs or to re-examine and/or
update an existing program or set of plans.
Market Analysis - Validating written job descriptions, matching
sales jobs to published sales compensation surveys, conducting special surveys
among peer companies, analyzing client’s current position relative to market
total target cash levels, and developing competitive ranges of total cash for
each sales position.
Sales Compensation Strategy – Determining for the individual
client the best target total cash position relative to market, the appropriate
mix between salary and target incentive for each type of sales job; the general
structure of each sales plan (e.g., revenue/commission or quota/target
incentive); and the degree to which individual and team factors are considered
in each job’s incentive arrangement.
Plan Design - Working jointly with the client organization,
determining plan performance measures and weightings; the design of the
incentive formula including the use targets, thresholds, maximums, and
accelerators; modeling incentive pay-outs at each performance level within the
formula, as well as plan eligibility and plan administration.
Commission Calculations - Developing a template for calculating
commissions and/or incentives as well as individual commission statements and/or
alternatively, evaluating available software, and the outsourcing of commission
calculations and administration.
Communications - The development of a final plan document that
communicates the essential plan features and rules to current salespeople and
new hires; and/or development of PowerPoint presentations, and the actual
training of the sales force on the sales compensation plan.