As organizations evolve, so too must sales job roles and sales compensation plans. This is particularly true for successful startup organizations that are poised for accelerated growth. Startup organizations deploy hunter sales reps, among other sales resources, to capture market share wherever possible. At this stage, organizations often reward these hunters by paying a commission rate for every sale.
As organizations mature past the startup stage, focus shifts from acquiring to retaining market share. To support this shift, organizations may deploy one of two sales coverage options: separate hunters and farmers, or a hybrid hunter/farmer role. Each resource will have responsibilities ranging from acquiring new business (hunter) or retaining and growing existing business (farmer) or both (hybrid).To support continued growth, sales compensation plans must change to align with the evolution of an organization’s sales and business strategy as well as with the responsibilities of the sales roles. Given these changes, communication plays a vital role in the successful transition between stages.
Depending on your organization’s growth phase, sales strategy and objectives differ. To achieve the sales strategy and sales objectives, roles and sales compensation plans should evolve and align accordingly. Additionally, communication is key when transitioning from one sales compensation plan design to another. Without buy-in from the salesforce, new plans will fail to drive desired behaviors.
Article by Wendy Lo, Alexander Group
Published November/December 2018, Workspan, the Magazine of WorldatWork©