Build Variable Systems for Incentive Compensation

Build Variable Systems for Incentive Compensation

Customer Testimonial: Greg Vartanoff, Blue Cross/Blue Shield MichiganCustomer Testimonial: Greg Vartanoff, Blue Cross/Blue Shield Michigan

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Prepare your salespeople to succeed, and their competitive instincts should push them to succeed. If they need more motivation, perhaps they are among the majority that are in the wrong profession[1]. But let’s not exaggerate: No salesperson would work for free, so you need to have a fair and flexible incentive compensation system for base pay, bonuses, rewards and stock.

Lead with Strategy

Organizations adopting sales performance systems, specifically incentive compensation technologies for variable sales compensation, reduce errors by more than 90%, processing times by more than 40% and IT/administrative staffing by more than 50%[2]. But rather than looking at incentive compensation as either strictly a money saver or a motivational tool, look at it as a strategic tool:

  • Reward successful behaviors to drive success
  • Track metrics to measure improvement in selling skills and product knowledge
  • Review territory management to optimize opportunity potential and penetration
  • Share information to drive competition within the sales force and to motivate the team toward common goals

Interactive training techniques involving student-to-student learning typically result in 90% retention of course content[3].

More than 60% of sales professionals say they are motivated by internal recognition[4]. So remember, it’s about the money, but it isn’t all about the money.

[1] Herbert, How to Hire and Develop Your Next Top Performer, 2001
[2] Gartner Research, Don’t Let Tactical ICM Wins Hinder a Strategic Approach to Sales Performance Management, 2012
[3] Peter Ostrow, CallidusCloud C3 keynote presentation, 2012
[4] Peter Ostrow, CallidusCloud C3 keynote presentation, 2012

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