The success of any sales compensation plan is dependent upon the readiness and involvement of those affected in the design process, the proper design, and most importantly effective communications.

The results of a successful plan should include:

• Focus on critical short- and long-term objectives;
• Provide competitive pay;
• Put more compensation cost at risk;
• Rewards linked to contribution;
• Modify cultural patterns and revitalize business thrust, if necessary.

Sales compensation plans that fail, typically have the following characteristics:

• Too complex;
• Demotivating;
• Rewards not frequent enough;
• Not team oriented;
• Lack of measures on cost control or profit;
• Specialized incentives were needed, but overlooked;
• Lack of linkage to other programs and the business plan;
• Sales support functions were not included.

The Quorum Group endeavors to develop sales compensation programs that channel behavior that appropriately fits within, and ensures delivery of, the business plan. Our approach is to deliver programs that are designed to self-fund before rewards are granted. Additionally, we urge Clients to incorporate incentives for sales support positions into the overall design of sales compensation programs, thus making performance awards functionally interdependent.

The Quorum Group
John G. Brau, SPHR
P.O. Box 2121
Alvin, Texas 77512-2121
Tel.: 281-393-1100
Email: JohnB

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Copyright © 1999 - 2008, The Quorum Group
Last Update: September 02, 2008