NEW Professional Member Special>>> Save $20 and receive a SHRM tote bag
More companies are recognizing the importance of giving employees the time and space they need to navigate personal loss.
Save $20 on a New Professional Membership and receive a FREE Tote bag when you join SHRM today!
Learn to overcome challenges and meet your 2017 goals through competency-based HR education. Available in-person and virtually.
Expand your influence and learn how to become an effective leader. Join us in Phoenix, AZ | OCTOBER 2 - 4, 2017
Every year, millions of dollars are spent on sales incentive compensation. However, new research reveals that at some organizations incentive compensation practices may undermine sales effectiveness. Consider the following findings from a 2012 sales performance study by consultancy Accenture and market research firm CSO Insights:
These findings raise the question of whether salary and commission structures are encouraging sales reps to establish the right priorities.
Understanding the Problem
One likely reason for the incentive/output disconnect is that business models are evolving rapidly. For instance:
In net, it appears that many companies are trying to power new selling models with old approaches to incentive compensation. In many cases, however, it isn’t working.
Structuring a Solution
Ways that organizations might tighten the link between incentive compensation and higher sales productivity include the following:
The bottom line: creating incentive programs and support systems based on the right metrics for the organization and industry can drive better sales performance with higher return on investment.
Jason Angelos is executive director, and Mark Wachter is senior manager, in the sales and customer services practice at Accenture, a global management consulting, technology services and outsourcing company serving clients in more than 120 countries.
© 2013 Accenture. All rights reserved. Posted with permission.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Choose from dozens of free webcasts on the most timely HR topics.
SHRM’s HR Vendor Directory contains over 3,200 companies