Incentive compensation is often the sales organizations largest expense. It also garners the lion's share of attention when compensation related issues arise. But firms make sizable investments in other types of compensation that are often overlooked - these include base salary, benefits related to health and retirement, non-cash recognition, and long term incentives such as stock options or profit sharing. These additional elements combine with incentives to make up total compensation.
Our recently concluded research suggests that firms overlook opportunities to communicate total compensation's value to the sales force, and doing so would improve their compensation program's overall effectiveness. In this review of research findings, Bob Kelly reviews key research findings and suggests practices that can improve management's effectiveness in communicating total compensation's value to the sales force.