Is your sales compensation plan getting you the results that you need?
Years ago a Fortune 1000 Technology client decided to award the President's parking spot to the top sales rep each month to motivate performance. Parking was a real hassle for employees (#1 on a recent employee satisfaction survey). The sales compensation team was excited about the low cost of the reward compared to the anticipated revenue and employee satisfaction jump.
Guess what? The President's spot was as far away from the sales team's office as possible. It became a running joke instead of an incentive. Not surprisingly in hindsight, the parking spot did not drive additional revenue or engagement. When it comes to sales compensation, experts know that effectiveness does not come easy.
"Messing" with people's paychecks is a big deal. Unintended consequences are common with poorly designed and implemented sales plans.
While most sales compensation plans have good intentions, we have seen more sales teams rebel against new plans that would actually pay them more money than we can remember.
Additionally, sales leaders looking to increase revenue face an increasing challenge in recruiting and retaining qualified sales people. While the unemployment rate may be high, finding top sales talent continues to be a struggle for many.
Total sales compensation programs that reflect the strategic goals of the employer and the varying needs of its sales force are an integral part of hitting sales targets.
Learn more about sales compensation, design, and planning...
About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned
July 29, 2011
Thawing the Salary Freeze: Is it time to do something about your top talent's compensation?
At what point do you have to do something?
At a recent conference that question was posed to us.
Actually the individual asked, "When you have had your salaries frozen for awhile, how long can you leave them frozen before you reach the point that you have to do something?"
Many organizations have instituted salary freezes during the recent downturn. Some have instituted freezes for one, two, or in this case three years. Depending on the source you reference, during the worst part of the recession as many as 40% of organizations instituted a salary freeze.
Because salary freezes were so widespread, it was easy to feel secure in thinking that everyone was experiencing a freeze situation. After all, misery loves company.
However, it is easy to forget that if 40% of companies instituted a salary freeze, then 60% didn't. And the duration of every freeze was not the same from organization to organization. Depending on your specific sector and the types of skills and talent you require in your organization, you could find yourself in a very uncompetitive situation.
While it is true that a multitude of factors (especially management practices) contribute to employee engagement and retention, don't be fooled into a false sense of security when it comes to compensation.
Read about the 5 key compensation considerations for coming out of the freeze...
About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned
At a recent conference that question was posed to us.
Actually the individual asked, "When you have had your salaries frozen for awhile, how long can you leave them frozen before you reach the point that you have to do something?"
Many organizations have instituted salary freezes during the recent downturn. Some have instituted freezes for one, two, or in this case three years. Depending on the source you reference, during the worst part of the recession as many as 40% of organizations instituted a salary freeze.
Because salary freezes were so widespread, it was easy to feel secure in thinking that everyone was experiencing a freeze situation. After all, misery loves company.
However, it is easy to forget that if 40% of companies instituted a salary freeze, then 60% didn't. And the duration of every freeze was not the same from organization to organization. Depending on your specific sector and the types of skills and talent you require in your organization, you could find yourself in a very uncompetitive situation.
While it is true that a multitude of factors (especially management practices) contribute to employee engagement and retention, don't be fooled into a false sense of security when it comes to compensation.
Read about the 5 key compensation considerations for coming out of the freeze...
About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned
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