Thinking of revising your sales comp plans for the next fiscal year? Well, now is the time to get moving!
These statistics are not surprising. There is a plethora of reasons why companies choose to revamp their comp plans every year-
The list goes on.
If you are in charge of designing the sales comp plan at your organization, you are aware that the window period that employers have to implement any compensation changes, including OTE compensation, is very narrow. Facilitating communication with both leaders and employees in a timely manner is nothing short of a challenge, especially with the risks involved.
Waiting until the year-end to take on this mammoth task will only compound the challenge, especially if your organization has a multitude of jobs and sales personnel, requiring consultation on even minor changes in the sales comp program, including those related to sales recruitment.
Your best bet? Form an action plan now! A sales comp review or reset requires a tailored approach. Start with the basics. Creating a simple step-by-step approach will go a long way.
If you are a sales comp manager trying to figure out how to navigate this challenge, here’s a quick checklist for you-
Any sales comp revision will need a top-down approach. The first logical step will be to secure senior management approval. Some starting points can be-
When considering changes to your sales compensation plan, it's essential to recognize that sales compensation involves various moving parts. Conducting a thorough examination of the numerous factors at play will serve as the foundation for any adjustments you make to your compensation plans. To guide this process, ask yourself the following questions-
Some questions that can addressed in employee surveys can be-
After the sales comp changes are thoroughly discussed, assemble a task force of sales management, sales ops, product management, finance and HR to assess the feasibility of implementing said changes. If the cost analysis deems these changes too risky or too generous, reevaluate.
It is not an exaggeration to say that sales comp revision is a major challenge. A key element to comp management success is an automated system that supports the cycle of feedback and can quickly incorporate these changes, including robust sales pitch examples that resonate with your target audience. Asking yourself these questions to make sure that your solution is really automated and future-ready should be a good starting point-
To learn more about how Kennect’s automated sales performance management solution can help you with your new sales comp changes, book a demo with us today!