Your Sales Compensation Strategy is Key in Battling Revenue Volatility

You’ve likely seen it in the news, scrolling online, or even heard about it in company meetings. We’re in a state of market volatility and it is impacting businesses of all kinds.

Between market changes, inflation, fluctuating interest rates, and supply chain issues, it has made sales achieving revenue goals more volatile. In fact, a recent McKinsey article shared that 57% of CFOs believe that company revenue performance has been more volatile over the past 12 months, and 51% expect similar volatility in the next 12 months.

Develop Better Revenue Strategies

To battle risk, companies must develop better revenue strategies for the volatile market. From diversifying products, to targeting new customers, there are many tools to combat revenue volatility. But there is another secret weapon when it comes to optimizing business resilience: your sales compensation strategy.

Compensation; including wages, salaries, bonuses, commission structures, and more, has evolved into a process that considers all aspects for revenue growth amidst volatile times, especially for sales teams.

Discover 5 reasons why compensation is key in battling revenue volatility, and how your team can leverage compensation to thrive in trying times.

1. Motivating the Right Performance Through Sales Compensation Strategy

In an era marked by revenue uncertainty, leveraging a robust Sales Compensation Strategy is pivotal for sustaining high levels of performance. Compensation can be a form of feedback, and up-to-date reporting and tracking allows sellers to understand their performance.

It also allows them to shift behaviors to meet goals, and focus on what is important. By linking compensation to individual or team performance, companies can incentivize employees to stabilize and improve both new and existing revenue streams. Ultimately, this helps strengthen existing paths to revenue and motivate the right sales performance.

2. Retaining Top Sales Talent

Did you know that the highest sales performers are approximately 800% more productive than average performers in the same role?

In times of trouble, organizations feel pressure to cut costs, which includes downsizing and layoffs. But in many cases, retaining and recruiting top sales talent can be the best response to market volatility. A competitive compensation strategy can help retain top performers. Keeping experienced and skilled team members on board can contribute to stability, resilience and during fluctuating markets. Plus, strong teams can find good opportunities in times of volatility.

3. Increasing Productivity and Profitability Through Effective Compensation Strategy

In today's competitive business landscape, employee productivity and business profitability are closely intertwined. The more team members and sales reps know about your organization, the more efficient they become. Skilled employees are able to adapt to changing market conditions. When designed and implemented effectively, your compensation strategy can foster a culture of productivity, profitability and can serve as a tool to recognize employees and their contributions. When sales reps see a clear correlation between their efforts and rewards, it can enhance productivity and drive results.

The Alexander Group predicts that only 28% of sales professionals will hit their sales goals this year. In a recent episode of What I Wish I Knew, VP of Sales Amii Stephenson discusses how you can support your sales team in these markets to meet these goals. Watch the episode here: Strategies for Sales Team Success in a Volatile Market.

Additionally, leveraging the right technology can streamline compensation processes to let sellers focus on what matters most. But we’ll get to that in a bit!

4. Reducing Employee Turnover

While the right sales compensation strategy can help retain top talent, it can also be leveraged to reduce turnover. When signs of volatility appear, many employees seek more stable employment options. The cost of seller churn can hurt an organization overall, by adding expenses to onboarding and recruitment, training, development. It can also add to loss of sales and lost productivity.  The right compensation strategy can minimize seller churn. Sales management can fairly reward team members for their contributions, making them less likely to look for alternative opportunities. This ultimately can retain human expertise, minimize costs associated with recruitment, and maintain stability in sales cycles.  

5. Aligning Sales Compensation Strategies with Company Goals for Success

The best sales compensation strategies align to overall company goals. Leaders who are transparent on what works for the revenue engine will be able to properly incentivize employees to hit those sales targets. Giving employees the insights to necessary data allows them to make meaningful decisions and stay on track to meet the right objectives. By linking compensation to company goals, organizations can incentivize behaviors and outcomes that contribute to their success.

Putting The Right Sales Performance Management Tools in Place

Once a sales compensation strategy has been set, it’s just as important to leverage the right tools to distribute the plan, monitor performance, and adjust as needed. A sales compensation tool can help alleviate administrative work, optimize your sales process and ensure accurate sales commissions. For Sales Compensation Managers, it can uncover insights and allow them to focus on the strategic value compensation can bring. You can learn more about this elevated role in our new eBook, The Role of a Modern Sales Compensation Manager.


Compensation is a key factor in combatting revenue volatility. It can drive top performance, keep the right talent, engage employees and minimize turnover. By designing a compensation strategy that aligns with the organization's objectives and addresses the specific challenges posed by market volatility, companies can enhance their ability to successfully navigate through uncertain times.