Communication key to sales compensation plans – WorldatWork and OpenSymmetry

Effective training and communications are critical to the success of new sales compensation programmes, according to research from WorldatWork and OpenSymmetry. Gaining buy-in from sales managers is also important, the research suggests.

• The survey shows that 71% of organisations use three or fewer performance measures in their sales compensation plans, the most common being total revenue and key sales objectives or milestones.
• Around 60% have policy guidelines governing the process, manner and frequency against which sales compensation plans are reviewed.
• 90% have a formal plan that details the governing terms and conditions of the plan.

David Blume, Senior Vice President of Sales and Marketing at OpenSymmetry, said:

‘As best-in-class sales teams push for more aggressive goal setting and higher rewards, simplicity in the sales plan design is key to tracking performance and shaping sales behaviour in a more focused and impactful way. Highly complex sales compensation plans with too many performance measures can demotivate sales teams and contribute to rainmakers scattering their efforts amongst too many targets or just jumping ship.’

‘Sales Compensation Programmes and Practices’, A report by WorldatWork, underwritten by OpenSymmetry, October 2016 [PDF]: www.worldatwork.org/adimLink?id=80851