Is your sales force an asset that will help the company rebound when the COVID-19 crisis abates?
Sales leaders seek to protect sellers’ pay during the COVID-19 crisis. 82.2% are planning some type of sellers’ pay adjustments according to results from the Alexander Group’s COVID-19 Sales Comp/Quota Survey. Conducted during the week of March 23, 2020, the survey had responses from 203 sales departments representing 340,000 sellers in the US. Sales leaders have yet to identify the amounts and techniques.
The following factors will influence how much pay protection companies will provide to sellers:
Companies are considering a variety of pay protection techniques:
What about companies facing dire conditions? Or, what about the reverse? Those companies experiencing a sales spike because their products are in high demand due to the COVID-19 crisis.
Those facing dire conditions can attempt to weather the storm by taking on debt, others might need to suspend all incentive payments, reduce base pay or reduce headcount through terminations and layoffs. Those expecting sales windfalls due to the COVID-19 crisis have different choices: allow earnings, redo payout formulas or cap earnings.
A significant drop in sales revenue can have a major impact on the sales force, including turnover caused by reduced earnings or company initiated terminations. Most companies consider their sales force a long-term asset possessing unique institutional knowledge about products, customers and company practices. The loss of the sales force due to turnover or terminations will directly impact a company’s ability to rebound from the COVID-19 crisis.
This is the second in a series about the impact the COVID-19 crisis is having on sales compensation/sales quotas.
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©2020 The Alexander Group – All Rights Reserved – Issue 200420
READ ALL ISSUES:
Solving Today’s Market Disruptors
Global Sales Comp Practices
Sentinel Charts to Monitor Programs
Sales Comp: Linked Formula Design
Sales Quotas: Friend or Foe?
Sales Comp: Breaking the Rules
New Fiscal Year Sales Comp Plan
Sales Force Trends
Test Your Knowledge
You Can’t Hide From It
Getting the Mix and Leverage Right
2021 Sales Comp Hot Topic Findings
Should Reps Be Paid on Profits?
Sales Comp Starts With Job Design
Sales Compensation Victims
Global Sales Compensation
Are Salespeople Coin-Operated?
2021 Sales Comp Trends Findings
Is Sales Comp Just for Sellers?
Sales Comp: Rewarding Sales Profits
Pay Equity and Sales Compensation
2021 Sales Compensation Planning
Avoiding Common Misunderstandings
2020 Sales Comp Hot Topic Findings
What COVID-19 Found in the Shallows
Best Revenue Recovery Solutions
Save the Sales Force
Sales Seek to Protect Incentive Pay
Should You Protect Sellers’ Pay?
Use the Right Measures!
Are Comp Plans Industry Specific?
Careful About That Threshold
Commit to the Money, Not Mechanics
Should You Change Your Comp Plan?
Are sales comp costs variable?