Creating Fair Compensation Plans
This is your HR news flash, your briefing on talent management and the world of work from HRCI. A properly incentivized compensation plan can affect your business. Taking on new clients contributes to your organization’s business success. To optimize your entire sales function, you must motivate your team through fair and realistic financial incentives. Having an effective sales compensation plan that pays employees well for meeting expectations is essential. Here are some components of a successful compensation plan, according to Scot Sorenson, senior advisor of Strategic Sales Results: First, find the win-win Tie variable compensation to individual performance, as well as to department or organization performance. Second, incentivize behaviors Focus on big-picture goals and encourage your sales team to leverage strategy to align your compensation plan in lockstep with your company goals. Third, award top performance Ensure that awards are easy to understand and motivates the team to excel through commissions. This concludes your HR News Flash. HRCI prepares HR leaders for the digital age. Thanks for listening. Check back soon for the workplace news you need. Learn more at HRCI.org.