Like a draining reservoir, the COVID-19 crisis revealed some unpleasant sales compensation challenges below the surface. While revenue decline varied by company, it impacted incentive pay tied to revenue production. Some organizations saw little to no change in revenue, many saw a decline and, in some cases, a steep decline in revenue with a corresponding impact on incentive pay. For those pay programs adversely affected by the drop in revenue, sales departments scrambled to protect sellers’ target incentive pay. Sales leaders adopted a variety of techniques, including draws, guarantees and quota adjustments. Once sales departments bridged the target incentive pay gap, either partially or fully, they had a chance to look at the sales compensation program. Here are some of the sales compensation challenges they found (in the shallows):
There is plenty of time to prepare for the new 2021 sales compensation plans. Put together a task force. Look at all the plans. Improve the plan designs for a winning 2021. Fix the problems, including those nasty ones sticking out of the mud.
Sales Compensation Educator, Author, Speaker
Connect with me on LinkedIn!
©2020 The Alexander Group – All Rights Reserved – Issue No. 200620
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?