Practical HR Tips, News & Advice. Updated Daily.
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. […]
“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 […]