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Sales compensation management

How to Ensure Effective Sales Compensation Management

You need to think about sales compensation management to provide you a sales team with the right incentives for growth and success. The sales compensation plans of many companies today fail to motivate salespeople and end up overpaying poor performers. A combination of base salary, commission, and incentives, sales compensation is used to drive the performance of a sales organization. The process to compensate salespeople in a company differs from organization to organization. While some companies rely on simple spreadsheets and calculations to manage their sales compensation plans, others utilize sophisticated tools and applications for the purpose. Designing a Sales Compensation Plan The individual plan for a sales representative within your sales organization should be designed with specific concepts and components in mind, based on the role of the sales rep type within the deal, types of engagements, product mix etc. Design compensation plans unique to each role within the organization. Additionally, you need to manage sales compensation to oversee plans and ensure components drive performance aligned with organizational goals. Following are some strategies to effectively manage sales compensation: Leverage Targeted Incentives Want to create a new level of value within the sales system? Then start leveraging targeted incentives within a sales compensation solution. Not only will this allow you to achieve the desired results, it will also encourage behaviors in a way that is tailored to individual roles within your organization. From sales reps to C-level executives, sales compensation influences the behavior of everyone in an organization. However, when you need to impact a variety of roles across the sales department, a one-size-fits-all will just not suffice. Make Sure Your Compensation Plan Rewards the Top Performers If not designed properly, sales compensation plans may fail to reward the top performers and end up overpaying the underperforming sales reps who have exposed loopholes for their benefit. You must pay your top performers handsomely beyond their quota. If you fail to do that, you will eventually have an unmotivated sales team, which will not only affect the performance of your sales organization, but will also have an impact on your bottom line. Automate Sales Compensation Management More and more companies today are automating their sales processes, which includes compensation management. You can’t expect effective compensation management until you automate the process. Why is automation important? It’s a great way to manage incentives and compensation programs, automating sales compensation allows an organization to take control of their sales process, drive performance with built-in features, and motivate their sales force with increased, mobile visibility. Clearly, automating sales compensation is a no-brainer. If you’re looking for solution to automate sales compensation management to better manage your compensation programs, then CallidusCloud can provide you with exactly what you need. Free Report: Using spreadsheets for incentive compensation management? Here are the top 12 things you are missing.

DOWNLOAD THE REPORT

Download the Gartner Magic Quadrant for SPM report today and learn how to:

  • Shift from merely automating sales compensation to optimizing processes and compensation plans.
  • Incorporate artificial or augmented intelligence designed specifically for SPM optimization
  • Support requirements for revenue recognition under the new ASC 606 regulations.

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