Sales compensation helps motivate sellers to achieve and exceed sales goals. Most sales compensation plans provide overquota incentive accelerators to reward exceptional performance. What is the best way to set these accelerator rates? Although many factors affect setting these rates, the starting point begins with identifying the desired leverage (upside earning) and accompanying excellence performance expectations. Knowing these two numbers will answer the question: How much money should the best performers make at what level of sales production?
The simple outcome is to design accelerators to ensure the best performers are making the expected level of outstanding pay. Not surprisingly, this topic is full of complex scenarios and data issues that can lead to overly simple or overly complex rate structures. This article provides sales compensation practitioners with the analytical tools and solutions to tackle this topic.
Article by Rachel Parrinello, Principal, Alexander Group
Published August 2017, Workspan, the Magazine of WorldatWork©