For sales organizations scattered throughout the world, sales compensation presents a unique challenge. Should you have one global pay plan? Or should sales compensation designers configure the pay plans to match local conditions and practices?

One camp insists that sales compensation plans should be universal: An account manager in the United States should be paid like an account manager in the United Kingdom, Japan and Colombia. The other faction argues that selling is local, and pay plans should match the local job role. Frankly, both parties can see the merits of the others’ perspectives. However, the biases remain: One team favors global solutions and the other favors local solutions. Oh, and don’t forget about the third camp, the folks who say, “well, it depends.”

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Published June 2021, Workspan, the Magazine of WorldatWork©

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