(847) 236-1208

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 ...

Read More →

Why Don’t We Create a Better ROI for Salary Increases?

February 20, 2018  |   Performance Management,Uncategorized   |     |   Comments Off on Why Don’t We Create a Better ROI for Salary Increases?

According to a recent AON/Hewitt survey, even with small merit increase budgets, companies are still trying to spread the shrinking merit increase budgets across all employees. This creates a no-win scenario, as average performers who should be happy to receive an increase are disappointed that it wasn’t more and high performers feel undervalued for their contributions. From a recent IBM study, one CEO said: “All of my competitors have ...

Read More →

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 ...

Read More →

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.

Read More →

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 ...

Read More →