Incentive Compensation Management: Rolling out a Successful
Your business is only as successful as its workforce. In sales, this is especially true. Getting your sales representatives to perform at their best is important but frequently challenging.
Putting sales representatives on incentive compensation plans is a typical strategy. There are several names for incentive compensation, but they all refer to the same thing: variable comp, sales comp, at-risk pay, performance pay, etc. Simply put, incentive compensation is extra money or rewards of value (such as stock) given to employees in addition to their base pay in accordance with how well they perform.
These compensation plans can be structured using a wide range of performance metrics. Sales volume (number of units or revenue) is the most typical success metric for sales representatives,...