Elevate Sales Advisors’ Post

Sales Leaders: Review and Adjust Compensation Plans During Annual Budget Planning As sales leaders gear up for annual budget planning, one critical area that deserves close attention is the sales compensation plan. Here’s why it’s essential to review and adjust these plans during this process: 1. Align Compensation with Business Goals Your business objectives may evolve year over year, whether it’s entering new markets, launching new products, or focusing on higher-margin sales. Adjusting your compensation plan ensures that your sales team is incentivized to focus on the activities that directly support these goals. This alignment can drive the behaviors that lead to achieving your strategic targets. 2. Stay Competitive in the Market The job market, especially in sales, is dynamic. Competitors may offer more attractive compensation packages, and industry standards can shift. Regularly reviewing your compensation plan helps ensure you remain competitive, attracting and retaining top talent. According to a study by WorldatWork, 57% of organizations modify their sales compensation plans annually to stay competitive. 3. Adapt to Changing Economic Conditions Economic conditions, such as inflation or changes in market demand, can impact the effectiveness of your existing compensation plan. Adjusting for these factors during budget planning helps maintain motivation and ensures your compensation structure remains financially viable for the company. 4. Incorporate Performance Data Use the wealth of data from the previous year to identify what worked and what didn’t in your current compensation plan. If certain incentives failed to motivate your sales team or didn’t drive the desired results, now is the time to refine those components. Studies show that data-driven compensation adjustments lead to higher sales productivity and more accurate forecasting. 5. Boost Morale and Engagement A well-structured compensation plan can significantly boost morale and engagement within your sales team. When sales reps see that their compensation is directly tied to clear, achievable goals, and that it reflects market realities, they are more likely to stay motivated and engaged. This, in turn, leads to better performance and lower turnover rates. 6. Support Long-Term Sustainability A compensation plan that is reviewed and adjusted annually helps ensure long-term sustainability. By aligning pay structures with business goals, economic realities, and market conditions, you set your sales team—and your company—up for continued success. Incorporating a thorough review of your sales compensation plan into your annual budget planning is not just a financial exercise; it’s a strategic move that can drive better performance, retain top talent, and keep your business competitive. #Sales #SalesLeadership #CompensationStrategy #BudgetPlanning #SalesPerformance #EmployeeEngagement #BusinessGrowth

Striking the Right Balance: Fixed vs. Variable Compensation in Sales One of the most critical decisions when designing a sales compensation plan is how to balance fixed (base salary) and variable (commission/bonuses) pay. Get it right, and you’ll have a motivated team that drives results. Get it wrong, and you could risk turnover, disengagement, or misaligned behaviors. Here are some key considerations: Understand the Role: Different sales roles require different balances. For example, Direct Sales (who focus on acquiring new customers) might thrive with a higher variable pay mix, while Account Managers (who nurture existing accounts) may perform better with a more stable base. Consider the Sales Cycle: Sales reps in longer, more complex sales cycles benefit from a higher base salary to sustain them through periods of lower activity. For high-velocity sales with shorter cycles, a higher variable component can keep the team energized and results-driven. Motivation & Stability: While variable pay motivates, too much reliance on commission can cause stress and turnover, especially in unpredictable markets. Finding the sweet spot between rewarding performance and providing financial stability is key to long-term engagement. Align with Business Goals: The mix of fixed and variable compensation should align with your company’s goals. If you're focused on driving aggressive growth, a higher variable pay plan might be effective. If you're focused on retention and long-term relationships, a more balanced approach may be better. Review & Adjust Regularly: The market changes, and so should your compensation plan. Regularly review performance data and market benchmarks to ensure your fixed/variable balance remains competitive, motivating, and aligned with your evolving business needs. Ultimately, the right balance between fixed and variable compensation is not a one-size-fits-all. It requires constant refinement, understanding of your sales team’s needs, and alignment with the broader business strategy. #SalesCompensation #Leadership #SalesStrategy #Incentives #BusinessGrowth #IncentiveCompensation #SalesCommission

One of the surprises since joining Allitix almost a year ago, has been gaining a better understanding of the amount of time, re-work, and errors that financial services companies spend on paying their sales team(s). In meeting with dozens of companies on their current process challenges, time and time again paying their salespeople has been mentioned as an error prone, manual, and an extremely inefficient process - it's one thing Sales and HR teams can definitely agree on! In 2024, with the technology available, this should not be as complicated as it is for many companies today.  We currently work with Banks, Insurance Companies, and Business Services companies to automate this process with Anaplan technology and help them with process redesigns. Companies save on less admin processing hours, fewer errors, less time spent on the back and forth workflow (read: emails!) on disagreements, and most importantly - more time the Sales team can now spend - Selling! I firmly believe there is a ton of opportunity across banks, insurance companies, insurance brokers, and business services companies to make this process much more efficient - highlighted by some best practices described in this write up. Feel free to reach out directly with any interest or to see a live demo of the Anaplan platform.

In the #Sales compensation planning process, alignment is everything. But who exactly should you involve and keep in the loop? On best practices, Leo Rocha at CHG Healthcare shared there's no real one-size-fits-all answer, rather it's about overall alignment and buy-in both up and downstream. Conversations up and down the chain are smoother when you: 1️⃣ Work closely with your executive leadership team who'll sponsor your efforts throughout the process. It's never too early for you to set expectations on comp plan progress and timelines with this group, so there's no surprises down the line. 2️⃣ Keep field sales informed of the context around their plan and what the business is trying to achieve. The more sellers understand the overarching strategy, early, the more they'll feel like respected partners invited to contribute constructively as the plan gets developed and beyond. Who are must-have members you involve in your planning process? For more tips, check out this summary of our expert panel on sales comp plan design best practices: https://frma.ai/3YY6rZm

Effective #incentive compensation planning motivates and retains #sales professionals while driving revenue. Maximizing the benefits of incentive compensation #planning requires a strategic approach that aligns with your sales objectives, motivates your sales teams, and ensures fairness and transparency. Learn the key components of an effective incentive compensation process in this blog post. Casey Bulik Russell Gummelt #salesplanning #salesperformance #compensationstrategy #compensationplanning #connectedplanning #tech #tmt #salesenablement

Earlier this week, we mentioned how you can start transforming your sales team in five steps. The last point about motivation and compensation is significant in order to keep your team not only keen but also working for you rather than leaving. Other businesses will always be looking to capture your best talent! So – 𝘄𝗵𝗶𝗰𝗵 𝗿𝗲𝗱 𝗳𝗹𝗮𝗴𝘀 𝘀𝗵𝗼𝘄 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗿𝗲𝘃𝗶𝘀𝗶𝘁 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 𝗽𝗹𝗮𝗻? Have a read and share in the comments which other red flags might spell trouble. https://lnkd.in/gqrHKNBH #businesstips #360Consulting #SalesLeadership

Earlier this week, we mentioned how you can start transforming your sales team in five steps. The last point about motivation and compensation is significant in order to keep your team not only keen but also working for you rather than leaving. Other businesses will always be looking to capture your best talent! So – 𝘄𝗵𝗶𝗰𝗵 𝗿𝗲𝗱 𝗳𝗹𝗮𝗴𝘀 𝘀𝗵𝗼𝘄 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗿𝗲𝘃𝗶𝘀𝗶𝘁 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 𝗽𝗹𝗮𝗻? Have a read and share in the comments which other red flags might spell trouble. https://lnkd.in/dEUdqvGj #businesstips #360Consulting #SalesLeadership

👀 56% of sales reps who leave say inadequate pay is the motivating factor. Luckily for you, we’ve compiled a huge guide to compensation planning, including: 💡 What a compensation plan is 🤑 The importance of compensation design 💻 Why RevOps should own compensation  💰 Factors that affect compensation plans 🧭 Navigating the compensation planning process Learn more in our blog!👇 P.S. Do you think RevOps should own comp plans? Let us know in the comments. #SalesCompensation #CompensationPlanning

Earlier this week, we mentioned how you can start transforming your sales team in five steps. The last point about motivation and compensation is significant in order to keep your team not only keen but also working for you rather than leaving. Other businesses will always be looking to capture your best talent! So – 𝘄𝗵𝗶𝗰𝗵 𝗿𝗲𝗱 𝗳𝗹𝗮𝗴𝘀 𝘀𝗵𝗼𝘄 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗿𝗲𝘃𝗶𝘀𝗶𝘁 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 𝗽𝗹𝗮𝗻? Have a read and share in the comments which other red flags might spell trouble. https://lnkd.in/et-6bnP4 #businesstips #360Consulting #SalesLeadership

What really drives reps to go above and beyond – and what erodes trust to keep them from achieving peak performance? 🕵️♀️ Our Compensation & Motivation Pulse Survey set out to answer exactly that – and we uncovered some pretty fascinating insights. Asked what improves motivation at work: ✅ 59% said having confidence that commissions are calculated accurately ✅ 53% said timely commission payouts ✅ 48% said both visibility into how payouts are calculated and potential earnings ✅ 48% said quick responses to questions about payouts And yet, employees lack confidence in the accuracy of their commission payouts – which impacts motivation and performance. ❌ Only 47% are completely confident that their commission payout is always accurate ❌ 55% have questions most or every pay period about how their payout was calculated ❌ 85% manually recalculate commissions at least some of the time to ensure payout accuracy, taking valuable time away from more lucrative revenue-generating activities Discover more eye-opening insights – and learn how to rev up your team's performance 📊 – by reading more about the survey results on our blog: https://lnkd.in/gmErAXqk #MotivationInsights #IncentiveCompensation #SalesPerformance