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Sales Compensation Design

Compensation is the key driver in the motivation of sales people. Motivation directly affects performance. Therefore, to ensure that members of your sales force perform at their maximum potential, they must be appropriately compensated at a level that motivates them to strive for success. If compensation design is done properly, it will propel performance to the highest possible levels, sustain morale, and influence high sales achievers to join your organization. If compensation design is done poorly, the negative effects can last for years.

Without a top compensation plan on the table, companies fail to attract the best sales talent, which directly affects ROI.  Not only will you not be able to attract talented sales people, you will fail to hold onto the highly skilled sellers currently on your payroll. When a company’s compensation design hampers a top sales representative’s earnings, he or she will aggressively pursue a better opportunity elsewhere. Top talent is worth more in revenue than its cost in compensation, and the right compensation design ensures that you retain that talent.

Without an effective compensation plan, your sales team may fail to perform consistently, costing you valuable time and money.  While every company has sales peaks that call for celebration, those peaks should not be outweighed by discouraging lulls that may cause your representatives to look elsewhere for new opportunities. Improve employee retention and maintain top sales performance on a consistent basis with a customized compensation plan from the executive consultants at Face Forward Media.

A high level of company morale equates to more than just a good vibe in the workplace. Upon implementation of a top compensation design, your company will experience a decrease in sick days, tighter-knit sales teams, higher employee retention and loyalty, and a stronger sense of collaboration between upper management and sales representatives, saving you money and boosting your ROI.

Face Forward Media specializes in improving compensation design to help companies maximize benefits. We consider the best possible design for achieving the correct balance between driving company strategy and motivating sales people. We understand the importance of a simple plan that sales people can easily translate at the point of sale.  Setting fair and achievable territory goals, tailored to a variable compensation structure, is key when designing incentive programs that make sense and drive key products at the correct time.

Only 41% of business leaders say they’re satisfied with their sales compensation plans, and fewer than half say the plans do enough to encourage the right selling behavior, according to a September 2008 survey by Deloitte. Face Forward Media understands that customization is the key factor and that there is not a “one size fits all” solution.

Another important factor in effective compensation design understands the relationship between channel structure, long-term company profit and compensation. Face Forward Media has found that most organizations derive a majority of revenue and consistent profit from a certain client profile. This “sweet spot” in the market requires the right sales approach, which is often specialized. The pay structure must be aligned to reward the necessary daily sale behavior to penetrate and capture that isolated market.

Face Forward Media has a wealth of experience in designing and implementing compensation plans. Our clients are provided with easily understood variable compensation plans aligned with their company objectives and budget. Our strong “pay for performance” blueprint outlines long-term effectiveness, and includes benchmarking and pilot studies to ensure that client goals are met. Contact our sales consultants today to learn more about enhancing your compensation plan and building company morale.


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