Most companies are keen to ensure pay equity among job incumbents. Pay equity—earnings parity—between men and women seems like a non-issue for sales compensation eligible sellers. Regardless of gender, sales results produce unambiguous earnings outcomes. Or, do they?
The majority of sales functions offer unencumbered sales compensation earnings prospects to all sellers, regardless of gender. The playing field is level. Sales leaders point to their performance platform designed to reward sellers for measurable outcomes; a true pay-for-performance model. It’s difficult to infer that the sales pay program is anything but gender-neutral. However, a deeper look may reveal hidden, unconscious practices that harbor unintended biases.
Sales compensation managers and sales leaders can test the sales compensation program as a neutral arbiter of pay outcomes. A pay audit should employ these fact-based tests to discover any pay disparity.
If some or all of these tests reveal pay difference, it’s time to investigate sales department practices. While the variance may be the result of simple job performance, further investigation should proceed.
The sales department operates a number of employment and incentive-plan dependent programs. If pay variance is evident, management should assess these programs to ensure their neutral application and outcome.
Use these suggested steps to investigate sales force sales pay equity practices:
Sales compensation practices may compare more favorably to other types of pay systems for its unbiased pay treatment of employees. However, the presumption of pay equity needs confirmation by testing pay data and investigating pay policies, practices and programs.
David
David Cichelli
Sales Compensation Educator, Author, Speaker
Connect with me on LinkedIn!
©2020 The Alexander Group – All Rights Reserved – Issue No. 201020
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
Quota Busters!
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?