When I was at the WorldatWork Sales Compensation Conference last week, it was quite exhilarating to share with others who have an interest or expertise in this area. While there were a number of great presentations and a very interesting keynote speaker in Sam Geist, I was awed by the level of interest of the participants. The questions were very pointed, digging for more information and asking for greater clarification to ensure that they got the most out of each session. Sales compensation has become an increasing topic of conversation many organizations. Striving for growth and increased profitability, the need for a performing sales compensation plan has become of greater importance. In order to achieve the best plans requires that organizations develop greater depth in sales compensation expertise.

There are key areas that require increased knowledge and education. These include auditing of plans to identify the gaps between where the plan is now and where it needs to be to fully support the business goals. Improved design process is another essential area for development. Too many organizations spend an afternoon in discussion about what changes should be made to the plan for the coming year. Investment in the sales compensation assessment and design processes is not only a wise investment; it is one that provides exponential returns. The need to develop experts in sales compensation is a necessity for larger, complex or multi-divisional corporations. In addition, it is crucial to educate management, both senior and sales management as well as line sales managers on how to use sales compensation effectively. It is a powerful tool if used properly, but a strong demotivator of executed poorly. Also, as companies move to create systems to manage their sales compensation, they need first to realize that without the expertise to utilize them effectively; their software and web applications will not be the panacea they expect. Communication is one additional area that needs special attention, but that is for another blog.

Dave