Last week, you did the hard work of figuring out what works in your incentive compensation plans. You also decided what’s not working. Today, I’ll discuss how to optimize the elements of your incentive compensation strategy that aren’t working, or change them so they work.
- Pull up your incentive dashboards. It will instantly show you which sales reps most need your help, and which are the outliers. Then, compare your team’s quota attainment with its incentive plan attainment. If, for example, your team averages at 60% quota attainment and 150% target incentive payout, then you need to rethink your commission plan.
- Are you using only metrics that matter? Some of the most popular sales metrics aren’t actually meaningful or truly actionable. Make sure yours are working by listening to our webinar with Sibson Consulting—Test Your Sales Comp – Is This Thing Working?
- Immediately correct what needs to be corrected. Cancel or rewrite what’s not working. Nothing says you can’t make sales compensation plan adjustments throughout year. Don’t wait until it is too late. If you don’t fix what you can now, you may not be at the table when your team writes incentive plans for next year.