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Archive for the ‘Compensation’ Category

Salary Planning for 2019

September 18, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Salary Planning for 2019

Salary increase budgets appear to be finally passing the 3% mark as companies compete for talent in an ever-tightening labor market, according to several salary surveys. Even so, the forecast still calls for relatively modest increases, as companies focus on the overall Employee Value Proposition. The projected total salary budget increase for 2019 is around 3.1% for Non-exempt employees and 3.2% for Exempt salaried and Officers/Executives. In 2018 ...

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Fairness and Equity in Rewards

August 21, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Fairness and Equity in Rewards

Organizations must ensure that rewards programs are rooted in principles of fairness in order to motivate and engage employees from different backgrounds and experiences. WorldatWork and Dow Scott, Ph.D., of Loyola University Chicago, gathered data about organizations’ perceptions of fair rewards and the tools rewards professionals use to create reward programs, policies and structures. An executive summary of their findings is as follows: • Promotional opportunities lead among employee ...

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Key Success Factors to Gaining C-Suite Buy-In for New Sales Compensation Plans

May 30, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Key Success Factors to Gaining C-Suite Buy-In for New Sales Compensation Plans

Gaining C-Suite buy-in to new sales compensation plans is one of the last steps before implementing new plans. However, we would first recommend to “begin with the end in mind,” as Stephen Covey recommends in 7 Habits of Highly Effective People. It’s not just the preparation for that final approval meeting that is important. The approach you take from the very beginning of the sales compensation project is ...

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The Role of the Sales Manager: What Role Does Your Sales Management Team Play in the Sales Compensation Arena?

April 24, 2018  |   Compensation,Uncategorized   |     |   Comments Off on The Role of the Sales Manager: What Role Does Your Sales Management Team Play in the Sales Compensation Arena?

• Are they a part of the sales incentive design team? • Do they take ownership of the sales incentive plan? • Do they own the communication of the sales incentive plan to their team? • Do they understand the pay mix and the associated base salary ranges for their direct reports? Most companies don’t answer yes to all of these questions. The question we ask is why not? Many sales ...

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Organizing Pay Practices in the New Year?

January 22, 2018  |   Compensation,Uncategorized   |     |   Comments Off on Organizing Pay Practices in the New Year?

We have heard from some of our clients that have grown and changed significantly in recent times that although their business needs have changed, internal HR processes have not always kept pace. This mode of operation can often lead to disorganization and inefficiency, which typically results in inequity and low morale. Implementing a compensation structure can assist in providing an organization with the ability to administer its pay ...

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Sales Incentive Compensation – A Species of Its Own

November 20, 2017  |   Compensation,Uncategorized   |     |   Comments Off on Sales Incentive Compensation – A Species of Its Own

In the world of compensation, sales compensation is a species of its own. While sales compensation and broad-based compensation employ some of the same principles, there are many differences. These differences are important to understand to effectively manage sales compensation, especially in relation to incentive compensation. The table below outlines some of the primary differences between sales incentive plans and corporate incentive plans.

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Year-End SPIFFs

October 23, 2017  |   Compensation,Uncategorized   |     |   Comments Off on Year-End SPIFFs

First, it’s important to know what the term SPIFF stands for: Special Performance Incentives for Field Forces. SPIFFs are commonly used to drive short-term behavior (less than 12 months, typically 1-3 months) to achieve a specific objective. There are a few questions that need to be addressed before developing a SPIFF for a sales team: • What behavior is your Company trying to drive/change? • What is the ...

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Pay Raises Remain Flat at 3%, But Wage Pressure Grows

September 21, 2017  |   Compensation,Uncategorized   |     |   Comments Off on Pay Raises Remain Flat at 3%, But Wage Pressure Grows

Salary budget increases are forecasted to remain at 3% in 2018, the same as the actual amount for 2017, according to the 2017-2018 Salary Budget Survey from WorldatWork, an HR professional organization. However, a tight labor market might create enough wage pressure to push pay higher in the coming year. The combination of a flat pay increase forecast, moderate inflation, and a low unemployment rate has created this unchanging salary budget forecast. The number of job openings ...

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Sales Compensation Design: One Size Doesn’t Fit All

June 19, 2017  |   Compensation,Uncategorized   |     |   Comments Off on Sales Compensation Design: One Size Doesn’t Fit All

Most organizations have a consistent process they follow to design sales compensation plans. Typically, part of this process includes developing a sales compensation strategy and philosophy. Whether you’re determining the best measure(s) to include or setting the pay mix, an important factor to consider is this: Organizations are comprised of different types of sales roles and sometimes multiple business units. What ...

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Sales Incentive Eligibility Isn’t Always Cut and Dried

May 22, 2017  |   Compensation,Uncategorized   |     |   Comments Off on Sales Incentive Eligibility Isn’t Always Cut and Dried

Compensation Consultants who specialize in sales effectiveness are frequently asked to comment “off the cuff” on sales incentive eligibility of various sales roles. While we can comment roles that are “typically” eligible based on our experience with many different clients, as well as compensation surveys, we do not recommend deter-mining eligibility based on title alone. Sales incentive eligibility is not always “cut and dried.” Sales roles can differ ...

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