Sales compensation is a pay-for-performance reward program. Senior leadership expects those who perform the best to receive the best pay. However, what is the definition of “best”? Is it the most sales production or some other measure? The most sales production may not be the only or best measure of sales performance. The definition of “best sales performance” will shift as the senior leadership redefines sales success as driven by market conditions and corporate business objectives. This paper examines how sales growth phases affect the design of the sales compensation plan and thus how to align rewards for top performers, not just top producers.
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