Here’s a microlearning on how to create a Sales Compensation Plan that will scale with your growing business. Too many times I am seeing that sales compensation plans are measuring and rewarding metrics that do not support organizational growth. At RCG Workgroup, we help our corporate clients measure the metrics that matter and forego the ones that don’t.
Our sales compensation plans allow our clients to:
- Define the sales and/or sales support roles required for their organization
- Identify the title and workflow to be associated with each sales and/or sales support position
- Inform when it is time to hire additional sales and/or sales support personnel
- Determine appropriate base salaries and On Track Earnings (OTE) for each sales position to attract and retain sales talent
- Create a variable compensation plan for an activity and performance-based commission structure that can be earned in addition to a base salary
- Install sales quotas to incentivize the appropriate sales behaviors and reward achievement of new and retained revenue
- Implement an annual sales team bonus plan that is based on company growth where participation is determined based on a percentage of quota attainment throughout the year
- Employ monthly SPIFs (Sales Performance Incentive Fund) to fine-tune and hone monthly sales activities with fun cash incentives that are determined by management to target specific sales objectives
- Involve the sales team in the development of their compensation plan to ensure that it will properly incentivize them while providing management with a way of effectively measuring and rewarding their performance
And it’s not just about the money. We also ask sales team employees what benefits are most meaningful to them. In addition to traditional healthcare coverage, paid time off, and 401K, many employees today are looking for:
- Educational opportunities
- Flexible schedules
- Remote work/work from home
- Maternity/Paternity/Caregiver leave
- Childcare subsidies
- Professional travel opportunities
- Community service/Charitable giving
- Other personalized incentives
Having a sales compensation plan that addresses performance, outcome, and growth while making the employee feel valued is the key to RCG Workgroup helping organizations have a solid foundation from which to grow.
If you’re at all concerned that your existing sales compensation plan is not scalable and will not support your organization’s growth, why not reach out to us to see how we can help?
Good luck and good selling.
~Bob Greene, CEO
