More than 130 companies, representing over 140,000 sales professionals, completed the survey in mid-December of 2010. Many survey respondents are optimistic about 2011 with continued growth expected in 2011. Finally, a noted jump in staff expansion plans confirms these positive expectations.
• 2011 sales growth projections are 8%, a noted continuation of 2010 performance.
• 2011 sales force staffing sees 61.72% of the companies adding headcount in 2011.
• 2011 compensation budgets will increase a median of 3%.
Sales Confidence Trends—Companies See Positive Growth in 2011: More than 80% of the reporting companies see positive revenue growth for their companies in 2011 as compared to 2010 results. Over 70% of the sales departments plan to make new sales effectiveness investments.
Sales Department Indices—Growth is Back as Well as Spending: Sales departments see an 8% increase in growth in sales results when compared to 2010. They plan to increase spending 3% (median). About 62% plan to add new headcount; a jump from about 41% the previous year.
Sales Compensation Program Practices—Pay Was Up in 2010 and Will Increase in 2011: The jump in 2010 sales increased overall compensation costs by 5% in 2010. Sales departments plan to manage overall cost increases to 3%. More than 65% plan to provide a base pay increase. Those granting increases will provide a 3% (median) increase. Over 92% of the companies plan to make changes to the 2011 sales compensation plan.
Read the Executive Summary of this year’s Sales Comp Trends Survey.
Learn more about the Alexander Group’s sales compensation practice.