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Job design or job roles are critical and I will tell you why. You can only have one compensation plan per job role so in order to make the plan as effective as possible, your job role (and by default, the comp plan) must be defined properly and map to the overall strategy of the company. Want more new business versus selling to existing business? Create a plan that goes after new business for a New Business Rep(role specific and plan specific). Specificity and focus will yield the results you expect!

I agree with this blog and would just add that I've been amazed at how companies don't seem to compare the job roles they have. It bothered me so much, that a key aspect of our product to help people with sales compensation planning and payment is to support a side-by-side comparison of the key elements of a plan. We let you see the job roles and then compare total comp, earnings curves, measures and quotas. Sometimes this visibility further helps bring clarity to the need for better job design.

You can see a picture of the side-by-side view at www.makanasolutions.com

Helpful post, Ann. Complicated incentive plans work against human nature. The best ones I've seen have a single "payout" component. Yes, there are other things that are part of the work, but they can be affected two ways. First, there is a "formula." One company I know used "8-6-4-1" for 8 phone calls, 6 appointments, 4 demonstrations and 1 sale.

Sales management should also be affecting how the work gets done. The best sales managers see a huge part of their work as training, followed by supervision to make sure things are getting done.

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About The Author

  • More Info Here
    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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