Leverage Complete Systems for Incentive Compensation

The targets for Sales and Marketing employees go up each quarter or every year, as a rule. Look at your own organization – are targets going up just to push your people for more, or are goals aligned to support revenue objectives? Is your incentive compensation system automating the calculation and payment of bonuses and commissions to reward the right behaviors?

“ Best-in-class companies have the right processes in place to drive revenue. ”

All for One and One for All

Best-in-class organizations place more emphasis on team-based compensation as well as individual incentive compensation and on global deal crediting, driving behaviors that benefit the entire company[1]. Best-in-class companies compensate behaviors to motivate revenue in several ways:

  • Compensate for team-based goals
  • Offer spiffs
  • Compensate cross-territory deals that ship from one area to another
  • Integrate a coaching program to reward both qualitative (sales) and quantitative (behaviors) goals

Best-in-class companies also have the right processes in place to drive revenue:

  • They get buy-in from senior management on the compensation strategy
  • Senior management does not decide sales compensation
  • They base compensation on industry standards
  • The sales team gets cross-training into other departments like marketing and operations
  • Reward individual accomplishment first but team goals as well
  • Add recognition to the compensation mix – 61% of employees say they want it[2]

And guess what? These programs and processes work. In late 2011, best-in-class companies planned to increase their 2012 sales performance management and incentive compensation budgets more than twice the industry average[3]. Compensation intelligently drive revenue.

[1] Aberdeen Group, Sales Performance Management 2012 – How the Best in Class Optimize the Front Line to Grow the Bottom Line, 2011
[2] Aberdeen Group, Sales Performance Management 2012 – How the Best in Class Optimize the Front Line to Grow the Bottom Line, 2011
[3] Aberdeen Group, Sales Performance Management 2012 – How the Best in Class Optimize the Front Line to Grow the Bottom Line, 2011

Customer Testimonial: VerizonCustomer Testimonial: Verizon