Companies will succeed this year, if leaders prepare. That includes having an updated sales compensation plan in place to inspire and reward.
In developing a new plan leaders shouldn’t only consider the target pay for each job, they should also think about how much variable pay they believe the job should include.
Variable pay is a powerful motivator, but it can backfire when leveraged inappropriately. Too much variable pay makes sales reps into independent operators sometimes unwilling to take chances for the company. Too little and sales reps may not be motivated enough.