Question from a client 11/12
by Jacob Heinrichs November 12th, 2008“How do I know that my sales compensation package is rich enough to attract and retain the best people, but structured well enough to prevent needless costs for mediocre performance?”
November 20th, 2008 at 6:57 pm
My suggestion is to first determine market and industry competitive compensation packages. This will give the information on where you can set compensation targets to be competitive. Next I would recommend a compensation that has a fairly even mix between fixed and variable elements, i.e., salary and commission or bonus. The variable component should not have a cap and depending on the industry a progressive nature to encourage maximum effort and performance from the sales person.
Richard Brune
richard.brune@oneaccordpartners.com