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Benefits December 3, 2009
Companies Changed Sales Comp to Reward Profitability
December 3, 2009 (PLANSPONSOR.com) - A new study by WorldatWork found that nearly two-thirds of organizations changed sales compensation plan design in 2009.
Reported by Rebecca Moore
According to “The Survey of Sales Incentive Plan
Revisions 2009,” the revisions placed more emphasis on sales profitability
(35% in 2009 versus 22% in 2008). In addition, more organizations (35% in 2009
versus 25% in 2008) changed performance measures to place greater emphasis on
business development, winning new business, and selling new products.
Looking ahead to 2010, better sales profitability is a
major concern for 40% of organizations surveyed. Organizations said they will
design sales compensation plans to drive both improved business results in
top-line revenue as well as margin in 2010.
A majority of organizations are changing sales metrics to
improve the alignment between business strategy and sales execution.
The survey also found nearly half of organizations see a
need to decrease plan complexity and plan to do so by reducing performance
measures or simplifying payout formulae.
« Survey Finds Companies Working to Match Pay to Performance