Compensation Solutions to Keep Your Finance on Track

If you’re running a sales operation, regardless of its size, ensuring that you have a compensation solution in place that is fair, attainable and liked by your team is sure to be a priority. After all, great salespeople deserve to be rewarded, right? Implementing a plan that meets these requirements while still being in line with the wider financial outlook and strategy is a bit of a balancing act. And calculating capping, targets plus ‘who gets what and when’ can’t be worked out on the back of a paper napkin.
With a solid compensation solution software package that either stands alone or integrates into your wider sales management program, you simply get out what you put in – valuable data, powerful analytics and performance records that keep your sales reps justly rewarded for their efforts.
Here’s some of the factors to think about when considering a new or improved compensation solution.
All’s Fair in Commission and Pay-outs
Creating a level playing field from day o ne is the foundation of any workable compensation solution scheme. That means setting consistent base targets so sales staff are clear when they can start earning beyond this, knowing when to cap on commission so there’s always a stated top level and ensuring transparency between sales reps. By introducing a clearly defined compensation package with easy-to-read graphics, real-time performance figures for every ‘player’ in the game and charts that break down the figures into chunks of understandable information, your team stays informed, on-board and sure of their goals.
Payment and Prizes for the Wider Team
Fans of a more traditional compensation model are likely to stick to one rule – compensation and bonuses for those that seal the deal. If you want to remunerate lead generators and prospect handlers as well as those that are ‘closers’, there needs to be another level of compensation within your plan. Also, make sure the rules of engagement are clear and reflected within your compensation solution plan. If the quota allocations or territory boundaries don’t make sense, or if the targets are simply unrealistic, nobody is likely to emerge as a winner and less deals will be closed.
Get Regular with your Rewards
In order to keep the troops happy and the balance sheet in good shape, decide once and for all if compensation will be paid out on a monthly quarterly or annual basis. A realistic time-frame must be established so your team can manage their money and your finance team can manage the business income. In addition, how quickly after training and on-boarding can someone in your sales team qualify for commission? Compensation solutions are almost always linked to the broader business and financial strategy, so any irregularity or change of rhythm will cause upset to the team and the books.
Motivation means Compensation
Smart graphics and interactive interfaces are good, so are honest, human conversations with your team about their earning potential - but what most people in this sector want is to be motivated by money. Is the compensation scheme tantalizing enough not to sway your top performers towards the competition? And in-between your team talks are you sure your people are feeling enough encouragement to hit their targets?
Consider your Hiring Strategy
Taking on the new kids straight from college on a lower base salary may well allow you to keep the compensation pay-outs lower as they are learning as they go, but once they start bringing in the deals what will you do to keep them with you? And how will your team feel if it’s clear there’s been a star player taken on who not only gets first bite of the big deals but somehow qualifies for a larger commission? And while thinking about this, here’s a final question – are you sure your compensation scheme is attracting the right talent?
If you manage to take onboard the above, you’re well on the way to rolling out a compensation solution program , such as the one offered by Varicent that will be respected, embraced and enjoyed. And of course, one that generously rewards your high-performing people which in turn is good for company profit.