Sales compensation is the most important factor in motivating salespeople to achieve their goals, as measured by the achievement of quotas and other performance standards.
The right sales compensation plan will attract, motivate, and retain a high-quality sales force that produces results for your company’s products or services.
A well-designed plan can help you recruit new talent into your organization when it is needed most — during periods of rapid growth or change — and can also help you keep top performers from leaving during times of uncertainty about future plans or rewards (such as mergers).
The Importance of Sales Compensation Plans
Sales compensation plans are an essential part of any successful business because they provide a means for linking individual behaviour with organizational outcomes: achieving objectives such as meeting revenue targets and increasing market share over competitors in a given period of time.
When properly designed and implemented, these programs have been shown
to increase motivation among employees who are directly involved in selling goods or services to customers
improve communication between management and field personnel
reduce turnover rates
minimize conflict between managers at different levels within the organization
ensure that appropriate incentives exist for all members within each level throughout the organization who contribute to achieving corporate goals;
encourage teamwork among individuals working on related projects within departments throughout an organization (e.g., marketing)
reinforce positive behaviours through recognition awards based on performance measures established by management
create opportunities for career advancement through promotions based on merit rather than seniority alone
establish clear lines of authority so that responsibility rests with those closest to actual work activities being performed by employees under their supervision (i.e., line managers)
allow companies to measure employee performance accurately against specific criteria set forth by management regarding what constitutes success in terms of product quality, customer service delivery, profitability per unit produced/sold/serviced, etc.
and much more
With Elevate, you can plan, design & manage both commission plans as well as quota-based plans with the utmost ease.
Elevate aspires to bring transparency in sales compensation. Sales reps can view all details regarding their commissions’ payout, quota attainment & revenue goals. Leaders can track the performance of every team member, manage product-based & territory-based revenue targets.