Year after year companies apply changes to incentive compensation plans, which drives some sales people crazy. Some companies are more consistent than others and have found balance in their program. They may apply tweaks that are required but that is all. So why do companies continue to make changes to the program? Below are the Top 5 reasons why changes are made in order for sales people to understand the rationale.
Top 5 Reasons to Redesign your Sales Compensation Program
- The company recently went through a merger or acquisition
- The strategy has changed (typically with new management or change in market)
- The program is not achieving the desired behavior from the sales people
- The program is paying out too much or too little in incentives
- The program is not aligned appropriately to your companies market segment or industry vertical.
