Practical HR Tips, News & Advice. Updated Daily.
Creating an effective sales compensation plan is a key component of a company’s overall compensation administration. The goal is to craft a sales compensation plan that motivates team members to perform strongly. Here are 10 principles to make sure your sales compensation plan is effective. Creating an effective sales compensation plan is a key component […]
Million-dollar sales reps are rare—but they do exist, and your organization can strive for such success. We have tips from Sibson’s Sales Force Effectiveness Practice Leader Joseph DiMisa on how to get your sales team on the path to high earnings. Fewer than 3% of product sales reps make more than $500,000 a year. Push […]
The stakes are very high when it comes to hiring salespeople, says Consultant Joseph DiMisa. It isn’t just a matter of salary and training—it can mean an average of $2 million in lost sales.
Scorecards are powerful aids for improving pay for performance, reducing entitlement, and, often, increasing employee acceptance of your pay program, says Consultant David Insler. Compensation Scorecards A compensation scorecard is any dissemination of aggregate compensation information beyond the HR organization. There are several types of scorecards, says Insler, who is the senior vice president at […]
Case Study: Company Situation A large high-tech firm was experiencing a significant amount of annual turnover by their sales reps, says DiMisa, who is senior vice president and the head of the Sales Force Effectiveness Practice at Sibson Consulting. Initial analysis showed that the cost associated with the company’s turnover was more than $50 million […]
And it’s not just dollars, adds DiMisa, who is senior vice president and the head of the Sales Force Effectiveness Practice at Sibson Consulting. Your salespeople are the company’s ambassadors, the conduit to the customer, usually the first impression, and maybe the only impression. You don’t want the wrong people in those roles, DiMisa says. […]
Yesterday, we looked at the first seven of consultant Jim Kochanski’s nine factors for pay-for-performance success. Today, the remaining two—plus an invitation to a webinar next week that will help you become fluent in pay for performance at your organization.
Should your organization have a sales compensation strategy that focuses on tying salaries to the costs of the goods sold (such as a commission-only program), or one with significant revenue or profit-based incentives?
DiMisa, who is senior vice president, Sales Force Effectiveness, at Sibson Consulting, clarified the difference between the two approaches during a recent webinar sponsored by BLR® and HR Hero®. “Cost of Sales” or “Cost of Labor” Philosophy? Approach Concept Example Market Cost of Sales Payouts are based on a percentage of volume or $ per […]
Can reps make more than their managers? Yes, it’s fairly common, says DiMisa, and, in most companies, there’s no limit as long as reps are selling the right products to the right customers. A recent survey by Sibson Consulting found the following: 19% said reps can make more than the CEO 48% said the reps […]