From the course: Sales Operations
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Designing compensation plans
- How do you go about creating a comp plan? Well, after you understand that market data, the next step is to gather feedback and work with all of the teams that are impacted by the comp plan. Typically, this is your sales compensation administration team, your sales leadership, finance and HR, but don't forget it's critical to get input from the actual reps too. Building a plan based on the input of those impacted by it is a key part of getting buy-in when you roll that plan out later. Let me also start with a key point which is the most misunderstood in incentive compensation plan design. Most modern sales plans are not just about incentivizing sales people to sell, but they're also about retaining your best people. Sales people think of their variable pay as part of their overall earnings and if they don't have a chance of hitting their target, they're gonna leave. Some other considerations in planning. First, simplicity is important. Plans that have multiple quotas or other metrics…
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