Many large employers are planning to make changes to their sales incentive plans during the upcoming fiscal year, such as changing performance measures (60%), changing performance measure weightings (50%), changing incentive formulae or mechanics (49%), and changing their pay mix (20%), according to a survey by Watson Wyatt, a consulting firm.
Conducted among 129 large employers, the survey found that 60% of respondents said sales force productivity and efficiency remains a significant concern. 48% of employers said sales force quota and goal setting is a concern. Just 47% of respondents said they are satisfied or very satisfied with their goal-setting processes.
The survey also found that fewer employers are planning more sales force layoffs as the economy shows signs of improvement. 16% of respondents said they plan to increase sales staffing levels in upcoming fiscal year. By contrast, 12% said they anticipate decreasing their sales staffing levels, down from 53% who said the same in February. Meanwhile, voluntary turnover has declined, with 81% of respondents reporting less than 10% voluntary turnover, down from 51% who said the same in February.
For help reviewing your current incentive compensation plan or to develop a complete incentive plan program from the ground up, contact HRN. Also, ask us about Incentive Pro, a new online incentive planning and administration system from HRN. To schedule an Incentive Pro webinar demonstration call us at 800-940-7522 or email HRN at firstname.lastname@example.org.