Are You ‘Cost of Sales’ or ‘Cost of Labor’?
“One of the basic philosophy decisions for compensation managers is whether sales compensation will be based on a cost of sales approach or a cost of labor approach,” says consultant Joseph DiMisa.
“One of the basic philosophy decisions for compensation managers is whether sales compensation will be based on a cost of sales approach or a cost of labor approach,” says consultant Joseph DiMisa.
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 […]