How to Use Comp Plans to Drive Behavior and Revenue
It’s important to have an incentive compensation plan to drive revenue and behaviors, and motivating your sales reps with incentive compensation will fuel their performance. By determining the organizational and individual goals of your incentive compensation, you can fashion a compensation plan to fit your needs and help the growth of your organization. By structuring your compensation packages to favor behaviors, you can have positive implications which resonate throughout your organization
If you want to see your sales reps exhibit certain behaviors, then your rewards must mirror that. Reinforce good behaviors through your incentive plan don’t just focus on revenue and results. By having your sales compensation drive your behaviors, you ensure that your sales reps are building good patterns that will lead to a more successful sales team over time. An effective compensation package will focus on driving results and behaviors together, not just one or the other.
In order to properly reward your sales reps for certain behaviors, you need to tailor your compensation plan to the behaviors you want to see. Basing part of their compensation on activities will result in better performance, such as training, you can ensure that you will see results in your sales reps and shift their focus to a more behavior-oriented approach. By aligning your reps with company goals, you develop a more successful sales cycle. Leveraging the compensation plans for behaviors will increase talent development and help drive your revenue as well.
By shifting the focus to behavior-oriented results, you’re ultimately investing in your sales reps, which will generate greater return on investment. Increasing performance will correlate with revenue, and will positively impact your sales cycle. In addition, by focusing on behaviors and developing your sales reps, employee retention and satisfaction are likely to improve.
By properly structuring your incentive plans, you can ensure you’re paying your sales reps fairly and efficiently. When you incorporate behaviors into your compensation model, sales reps will perform better and feel more satisfied with their roles. Win-win.