For several decades now, businesses have used Incentive Compensation Management (ICM) solutions to calculate commissions and implement their sales compensation plans. However, as technology grows and company needs change, businesses are finding the need to switch to modern compensation management systems.
Let’s say that you are armed with surefire tips for designing a winning sales compensation plan. You’ve actually gone through all the necessary steps for creating a balanced sales comp plan. You even went further to consult a professional and now you are set for the project. How do you make sure the compensation plan you create is embraced by everyone? Here's an in-depth discussion of the number one key to designing a sales compensation plan that everyone can agree on.
Times change. Businesses change, and when they change for the better, they grow. Sales is often the biggest factor in a business' growth, and as such, many factors within sales are affected. One such factor is the sales compensation plan. A simple and straightforward sales compensation plan is what every Sales Manager is probably dreaming of. Unfortunately, sales compensation plans come in all shapes and sizes, and are often complex.
The future is at hand and we already have generation Y in the workforce now. In fact, by 2020, a majority of the workforce will be the millennials. According to PwC’s Global Generational Study, this younger generation is versatile, tech-savvy, and creative. It is easy to view them as restless but with their unique qualities, they join the workforce with unique expectations.
It is not unusual for business owners to assume that any top performing salesperson is automatically a good candidate for a sales manager job. They then proceed to promote the top performer and assign them a sales team to lead. To their disappointment, a good number of such individuals fail to perform as managers. This not only hurts the company but also the new manager.