A new survey by Watson Wyatt Worldwide examines compensation and other factors that impact sales force effectiveness. Survey results, based on the responses of 841 sales professionals at 500 companies with large sales forces, address the practices of high performing companies versus low performing companies, with the distinguishing criteria being superior sales growth and financial performance.
Key findings relative to sales compensation:
- High performing companies provide their sales forces with a mix of compensation more heavily weighted toward variable pay (or, in other words, more "at risk" based on performance) than their low performing peers. Salespeople at high performing companies receive an average of 38% of their total compensation in variable form (incentive, commission or bonus) versus an average of 27% in variable pay at low performing companies.
- Twice as many sales professionals at high performing companies receive stock, stock options and other forms of equity pay as sales professionals at low performing companies (36% versus 18%).
Beyond compensation, the survey results also note distinguishing practices (between high and low performing companies) in the areas of sales force time allocation, attitudes and beliefs.
Learn more about the Watson Wyatt survey here.
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