Fall – the time of year when sales compensation managers review pay plans, dissect performance data, and determine next year’s sales comp plan changes. It’s also the time of year when freshmen college students are matriculating in Literature 101 classes, reviewing syllabi, buying books.
Coincidence? Hardly: turns out that sales compensation plans, and the great books of literature, treat the same recurring themes and enduring human traits. Chances are your own sales compensation plan is derivative of one of the following literary masterpieces. Which literary masterpiece is your company’s sales compensation plan
Canterbury Tales
Full of ribald good fun, The Canterbury Tales is among the greatest works of English literature. Why? For one thing, it’s really, really old – just like your sales compensation program! And, just like your sales compensation program, someone gets a hot poker in the arse every few pages. Hilarious!
Gulliver’s Travels
Imprisoned by a race of mean-spirited, six-inch high bureaucrats, Gulliver saves his captors from an invading enemy. Then he’s caught urinating on the Queen’s castle (he was putting out a fire). His hosts charge him with treason and threaten to blind him. He escapes to a neighboring country. Sales compensation is also effective for punishing petty crimes and ridding your company of its most valuable contributors.
The Grapes of Wrath
Times are tough – really tough. No need, then, to offer salespeople market competitive pay. Instead, pay them in salt pork. When this dang dust settles, you’ll see that the sales organization is just fine, and we’ll get back to planting. Will a few people leave? Sure. But, they’ll be back, because how great could things be in “California,” compared to our drought-ridden wasteland where everyone will die
The Great Gatsby
Does your sales organization embody a culture of greed and material excess? Perhaps you should pay them more. Old money, new money – in the end, it’s all money, and your salespeople are going to need more of it, if you expect them to do anything at all. While you’re at it, throw them a few nice parties.
Unlike literature’s great books, sales compensation plans require rewriting from time to time. If your plan no longer encourages the right selling behavior, now’s the time to consider changes that can re-direct the sales force for 2015. The Sales Management Association will host a series of sessions focused on effective sales compensation design over the next few weeks, including:
