Best Practice Report

How To Get The Most From A Compensation Program

December 22nd, 2020

Summary

Sales leaders need to maximize their investment in sales rep commission by aligning it to the appropriate level of sales growth. Sales operations must ensure the sales compensation program motivates reps by rewarding behaviors and outcomes tied to achieving company objectives. Sales leaders must ensure that each plan within the compensation program is correlated with overall sales performance.

A sales organization that focuses exclusively on increasing sales without regard to costs can lead to unsustainable sales salaries and overspending to reach company goals. Sales compensation is the biggest investment made to drive sales effectiveness, and a productive sales team is a key enabler of a company’s long-term financial success. In this report, we introduce a measurement structure that enables sales leaders to assess compensation effectiveness, allowing sales to maximize rep performance and contribute to the long-term financial success of the company.

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