Incentive pay has many purposes – recruitment, retention, alignment, motivation of behaviors and to reward performance. Corporate leaders who have adopted this philosophy have seen that pay-for-performance, variable pay, or incentive pay can promote top-line performance - but only when it is tied to metrics that are tested against outcomes.
A well-constructed compensation plan aligning sales compensation to individual, team or corporate goals can motivate employees’ behaviors in the desired fashion, leading to increased revenues and better margins.
This is because a happy sales team meets its objectives and earns well. But happiness doesn’t come from more money or paying commissions…It comes from knowing how their day-to-day activity is tied to success:
- They understand the link between their individual role and the overall company strategy and if the goals are fair and reasonable
- They recognize how what they can do every day is linked to meeting these objectives and how they are progressing along the way
- They have confidence that they will ultimately be rewarded and recognized for achieving these goals
Despite these benefits, enterprises continue to struggle to keep their sales performance management (SPM) technology relevant, with outdated plans, systems or spreadsheet-based solutions that continue failing to meet the increasing need for visibility across the entire process.
Download this self-assessment to gain an understanding of SPM best practices, see where your organization features, and learn what steps are necessary to get more confidence in your sales performance and incentive pay solution.