Sales Incentives Require Critical Update
Challenge: Our client had been purchased by a venture capital firm and was facing a merger. Existing sales incentive plans needed refreshing as retention of the sales force was critical. Current incentive plans were complicated to understand and needed to be streamlined and simplified. It was also necessary to re-think the plan to eliminate terms that were disincentivizing for the sales team.
Solution Deployed: After a review of the current sales incentive plan and market best practices were completed, several vital recommendations were introduced to reduce or eliminate complicating plan elements and provide increased earnings potential for high performers.
The new plan adopted a variable compensation structure, with fixed-rates tied directly to performance targets and included accelerators for exceeding annual targets. The new plan also removed a dated ‘claw-back’ clause that was de-motivating to sales employees.
We were successfully able to align the plan to the company vision and values, turn the de-motivating elements into motivating elements and incent and reward participants for attaining their goals.
Business Value Delivered. Changes to the plan allowed the organization to motivate its sales force by removing barriers to success and rewarding over-achievement. Changes also resulted in less complicated plan elements, enabling streamlined and efficient administration, saving the entire team time – and delivered fewer frustrations with just three plan elements deployed across all versions of the incentive plans.
Client Industry: Healthcare Technology
Project Type: Sales Compensation Structure, Change Management, Strategic Communication
Business Structure: For-Profit, Privately Held