Compensation Design Services

Where Great Sales Teams Begin…

Salespeople are your company's frontline champions and advocates for the products and services you sell. They are the connection between the company and its customers, the driving force of top line revenue and the main contributors to the growth of your company. And more than any other segment of your workforce, your sales team directly influences how the marketplace perceives the company and values its products.

To realize the maximum value of your sales team, it is critical you have a solid sales compensation program in place. A well designed compensation plan will:

• Attract and retain a top sales force
• Align employee interests with the company's business objectives
• Ensure compensation is results driven & market competitive
• Motivate & reward your sales team for their contributions to the company's success

At SalesForce Search, our team of compensation professionals will help you customize a sales compensation program to meet the needs of your business strategy and support the goals of your organization.

Key Issues

Whether it's an assessment of your existing sales compensation plan, or the complete design and implementation of a new program, our team will consider several key issues, including:

• What constitutes a "sale"?
• When is the salesperson credited with a sale:
  • upon receipt of the purchase order or contract,
  • upon delivery,
  • upon invoicing,
  • upon payment?
• What is the desired annual income for a typical salesperson and what sales volume is required to make that income?
• Will you provide a draw for salespeople on straight commission? If so, how much and under what conditions and terms?
• What type of draw, if any, will be offered:
  • recoverable or non-recoverable?
• What happens if a salesperson doesn't make their quarterly minimum sales target?
• Should quarterly minimum sales targets be seasonally adjusted?
• What happens in the event of a canceled project, sale, or contract?
• Are there to be assigned territories and/or accounts?
• Do you need arrangements for split commissions? If so, how will they be split?
• In the case where an account is turned over to a new salesperson, how is the former salesperson compensated for residual business that might occur and for how long?
• Is the plan to be tied to gross sales or gross margin?
• What is the preferred type of remuneration plan:
  • Straight salary
  • Straight commission
  • Salary & commission
  • One of the above plus a bonus?
• How much pay should be "at risk"?
• How does your compensation plan compare with your competition or similar organizations? What is your company's target market position?
• Should your sales compensation be capped or unlimited?
• How will sales performance be measured and tracked?

Developing a sales compensation structure that addresses all of these issues is a challenging process. However, once your plan is in place it will help drive your sales objectives and support your recruitment goal of attracting the best possible talent.

If you would like assistance in developing a competitive compensation plan for your sales force, please contact us to discuss our compensation design services.