Sales Compensation – Keeping It Simple
Most of us would agree that it’s a good idea to try to keep sales compensation plans simple, but in practice we rarely find an organization that accomplishes this goal. This is why I now start all sales compensation plan design discussions with the following question: If you can only include one component in your sales compensation plan, what would it be? This doesn’t mean you are selecting ...
Read More →Pay Transformation and Remote Work
There is no doubt in anyone’s mind that the Coronavirus Pandemic has caused major shifts in work-life patterns. According to Upwork, 42% of the American workforce is working remotely. But, by 2025, 22% of the workforce will still be working remotely -- a 37% increase from the number of remote workers prior to the pandemic. Remote work does work for companies. A Gartner Survey found that 80% of company ...
Read More →Setting Up a Manager’s Guide to Performance and Rewards
It’s important for companies to have a guide to compensation for their managers and employees. They need to have a framework so they are effectively spending compensation dollars. A company should want to foster fair and consistent pay decisions through the use of compensation tools and performance processes, ultimately to link total pay with both individual and the business's performance. It’s also equally important that employees have ...
Read More →Variable Compensation Cost of Sales
Variable compensation cost of sales (VCCOS) illustrates an organization's variable compensation costs as a percentage of sales. Many organizations search for the market benchmark. The challenge is every company is different. Here are some of the factors that prevent you from using a market benchmark: Pay Mix Variation – Not all companies have the same mix of pay between base salary and incentive compensation. It’s not appropriate to compare ...
Read More →2021 Compensation Strategy Benchmarking
According to a recent Willis Towers Watson Salary planning survey during the pandemic, one-third of companies halted their salary increases through freezing or postponement, while the rest implemented salary adjustments that on average are 0.6% lower than the pre-crisis level. As the world steadily moves towards restoring stability, many organizations are relying on extreme cautiousness and cost-saving strategies to navigate through the rest of 2020 and to create ...
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