Measuring the Impact of Salesperson Input on Sales Compensation Program Effectiveness

10 February 2022

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Sales organizations’ largest single expense (by far) is salesperson compensation. For other firm functions, payroll expense is predictable (if not boring), and not often considered in a strategic context. Sales compensation plans, on the other hand, are rarely the same from firm to firm. They change frequently with management priorities, they include both fixed (salary) and often complicated variable pay elements, and they address a group of professionals whose strong opinions about their own compensation often include keen insight into the competitive pay practices of market competitors.

How well do sales compensation programs serve their largest stakeholder group – their payees? This research measures the degree to which firms consider salesperson sentiment and satisfaction important in judging the effectiveness of their sales compensation programs. And, it details how, when, and in what form firms solicit input from salesperson payees on their sales compensation plans. In identifying these practices, the research hopes to quantify the business value of incorporating field input on sales compensation programs, including its impact on overall sales compensation program effectiveness and on sales force productivity.

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