Changes in digital buying, virtual selling and sales technology all have a huge impact on sales compensation. Sales teams that underestimate or fail to adapt to these changes will struggle to effectively motivate their sellers. Outdated compensation plans are designed for a different time, a different customer market and a different seller profile than what we have today.
As the threat of seller attrition looms large, sales compensation becomes a crucial weapon in the race for talent attraction, motivation and retention. In the face of these challenges, progressive leaders are adapting their sales compensation designs to align with changing seller priorities, giving their commercial organizations a strategic advantage in a period of continued disruption.
Questions to consider for designing sales compensation:
How can we incorporate the changes in technology, sales analytics and the sales talent pool itself into our compensation design process?
How must we adjust our compensation plans to account for go-to-market strategies that are more volatile than we’ve seen in the past?
What metrics should we adopt to evaluate the success of our compensation plans under changing conditions?
How do we set quotas that challenge and reward sellers, especially during times of high uncertainty?