Tiger Eye Hiring …a better way to hire!
The rebounding economy creates a great opportunity to align your sales compensation strategies to reward sales reps for the right results. A well defined compensation may also help you attract the top sales talent.
Ann Clifford, President
Dos and Don’ts
If an offer letter includes a detailed compensation plan, can a business make changes to it at a later time?
See answer provided below.
Evaluate Your Plan 3 Ways
If you are not getting the results you want from your sales team, review your comp plan before giving up on your team. The right mix of base salary, commission, and performance metrics can create a successful sales compensation strategy. The best plan for your company is one that rewards your sales team appropriately for the results you desire.
To determine if your plan is on target, ask yourself the following questions.
1. Are your top sales representatives being paid the most?
2. Are you rewarding your sales representatives for the results that will help you meet your company goals?
3. Has your plan adapted to changes in the market?
Promote Your Plan
Sales professionals are notoriously sensitive about changes to their compensation packages. To mediate potential issues, follow these steps when implementing your new compensation plan.
Inform Early – Give your sales force time to prepare for the change.
Be Detailed – Provide a clear explanation of the new structure. Include hypothetical examples and explain how the new structure would have translated with their past performance.
Allow Flexibility – If the new structure is not achieving the results you desire, revise. Ask your team for suggestions.
Your Viewpoint Matters
How do you set realistic sales quotas? A few tips are provided in our blog post.
Safari Interview Tip
Require sales candidates to provide detailed information regarding their most recent compensation packages and their specific results. Sales proffessionals who are unwilling to discuss money with you are likely to have trouble discussing money (budgets) with prospective customers.
Safari Success Story
Safari Solutions was recently engaged by a mechanical contracting company to identify a sales candidate. Once a top performing candidate was identified, a customized compensation plan was developed that worked well for both parties, employer and employee.
Did You Know
A recent Watson-Wyatt survey states that 6 out of 10 companies list productivity/efficiency as the most significant human capital issue currently facing their sales force.
What percent of companies expect to change the performance measures in their sales compensation packages in the coming year? A. 30%
Answer to Today’s Dos and Don’ts
If an offer letter includes a detailed compensation plan, can a business make changes to it at a later time? In Indiana, and many other states, employment is “at will.” This means that employers can end or change the terms of employment as they wish. To change a compensation plan, simply present the change to the employee. The employee has no obligation to continue working for the company if they are not willing to work under the new plan. They also have no legal ground to expect that employment would have continued under the past agreement. If you have legal concerns about an upcoming comp plan change, consult an employment law attorney. Call Safari Solutions if you need a referral.
(By Allison Witmeier, HR Consultant, Safari Solutions)
Safari Solutions’ recruitment process outsourcing services help companies hire better. Acting as a corporate HR partner, we help companies make educated hiring decisions by sourcing and screening candidates with a high level of due diligence. Over 200 business owners have received the expertise of a Safari Solutions recruiting specialist for their hiring initiatives. From receptionist to CFO, Safari Solutions improves hiring results!