Better times ahead, sales-wise? A newly released Watson Wyatt survey on sales force compensation and management suggests cautious optimism for the 2010 sales outlook, but also reveals plans for a sharpened focus on performance and productivity in the coming year.
From the Watson Wyatt survey results:
Cautious optimism is in play...
A large majority (83 percent) of respondents expect at least modest growth in fiscal 2010.
More than half (51 percent) expect to increase next year’s fiscal goals/quotas.
... But 2010 is looking to bring a sharp emphasis on improving sales performance ...
Six in 10 companies list sales force productivity/efficiency as the most significant human capital issue currently facing their sales forces.
Other main concerns cited include sales force quota/goal setting (48 percent), coaching/development (40 percent), training (39 percent), and morale and motivation (35 percent).
While responding companies are confident in the current alignment between sales performance and sales compensation ...
79 percent report their top performers earn the highest levels of sales compensation, indicating a strong link between pay and performance.
... Many are planning changes to sales compensation plans in the coming year ...
Companies expect to change performance measures (60 percent), performance measurement weightings (50 percent) and incentive formulas/mechanics (49 percent) in the next fiscal year.
All signs pointing to an interesting year ahead for sales compensation!
Thanks for sharing this research, Ann. I can't tell you how pleased I am to see performance playing an increasingly important role in employee compensation!
I've included your post in my weekly Rainmaker 'Fab Five' blog picks of the week (found here: http://www.maximizepossibility.com/employee_retention/2009/09/the-rainmaker-fab-five-blog-picks-of-the-week-2.html)to share this research with my readers.
Be well!
- Chris Young
Posted by: Chris Young | September 20, 2009 at 11:15 PM
Thank you for keeping me informed on the latest in sales compensation! I cited your post in my blog post this week to share your comments and thoughts on sales compensation with our readers as part of a continuing series on award program return on investment (please see the link to the post below).
http://www.awardsnetwork.com/blog/2009/10/award-program-return-on-invest-2.html
~Amy
Posted by: Amy Trueblood | October 14, 2009 at 01:55 PM