Designing an effective sales compensation program by John K. Moynahan

Cover of: Designing an effective sales compensation program | John K. Moynahan

Published by Amacom in New York .

Written in English

Read online

Subjects:

  • Sales personnel -- Salaries, etc.

Edition Notes

Includes index.

Book details

StatementJohn K. Moynahan.
Classifications
LC ClassificationsHF5439.7 .M69
The Physical Object
Pagination214 p. :
Number of Pages214
ID Numbers
Open LibraryOL4428805M
ISBN 100814455913
LC Control Number79054844

Download Designing an effective sales compensation program

Get this from a library. Designing an effective sales compensation program. [John K Moynahan]. Compensating the Sales Force has helped thousands of business leaders worldwide create sales compensation Designing an effective sales compensation program book that drive sales performance, increase revenue, and trigger business growth.

Now, this new edition brings you fully up to date with new approaches for a business landscape where product/solution objectives and customer needs are in /5(10).

Compensating the Sales Force: A Practical Guide to Designing Winning Sales Reward Programs, Second Edition - Kindle edition by Cichelli, David J. Download it once and read it on your Kindle device, PC, phones or tablets. Use features like bookmarks, note taking and highlighting while reading Compensating the Sales Force: A Practical Guide to Designing Winning Sales Reward Programs, /5(49).

Creating sales compensation plans is a challenging task—it’s all about balance, but Designing an effective sales compensation program book the perfect balance can be hard to strike. You need your incentives to drive the right sales behaviors in order to achieve sales objectives.

But, before you even begin planning your compensation, you need to ensure your sales territories are aligned and balanced. It can even be just a by-product of an effective program. As a sales compensation designer, this book will help you sort out what problems are real and what are not, where the solution resides, and how to make the right changes.

JOB CONTENT—THE SOURCE OF SALES COMPENSATION DESIGN5/5(1). Mark brings 25 years of experience in sales compensation planning to the book, in which he outlines how leaders can best connect business strategy to compensation planning.

Jennifer Dignum is Sr. Manager, Content Marketing, at Xactly Corporation, a leading provider of enterprise-class, cloud-based, incentive compensation for employee and sales. A good compensation plan will meet the needs of both the company and the sales team.

A compensation program helps the company by motivating salespeople to make the sales that will help the company meet its goals. It helps sales teams by providing guidance about which sales to make and by rewarding the salespeople for doing their jobs. Designing a payout curve that pays $2 for each $1 of pay at risk for the top 10 percent of performers is the baseline for a growth-focused, pay-for-performance sales compensation plan.

The sales compensation plan should be available and distributed to the sales force. The front line manager should use it as a tool to communicate the sales strategy and goals and motivate the Author: Elizabeth Wasserman.

Truly a comprehensive resource, The Sales Compensation Handbook, Second Edition is packed with problem-solving advice and insights that will help you keep your reps and your company profitable. Written by experienced analysts from one of the world's leading consulting firms, the book gives you "pearls of wisdom" from years of first-hand experience and reveals a myriad of high-level techniques 5/5(2).

PROGRAM HIGHLIGHTS • Why Sales Compensation & Incentive: Key Terms, Definitions, and Concepts • Strategic Approaches to Achieve Sales Force Effectiveness & Sales Force Retention • Designing and Managing Sales Compensation & Incentive Program • Sales Incentives Pay-Out Alternatives: Proven Method and Real Life Example.

Chapter 14 Administration Sales compensation requires attentive administration and, in some cases, powerful automation tools.

When done well, effective administration acts as an unseen but indispensable program foundation. To be - Selection from Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs, 3rd Edition [Book].

Many factors influence sales incentive compensation plan effectiveness. Learn best practices for max performance with your sales incentive program. Few leading indicators are more predictive of a company’s future sales performance than its incentive compensation plans.

As former Reliance Electric CEO Chuck Ames once said, according to General. An effective compensation strategy motivates current employees and is used as a tool to attract new ones.

People often think of compensation as merely a salary. However, the total cost of employee compensation includes every aspect of employee benefits. A seminal and still pertinent discussion of sales compensation is the two-volume study by H.R. Tosdal and W. Carson, Jr., Salesmen’s Compensation (Boston: Harvard Business School Division of Research, ).

For more general discussions for managers, see: J.K. Moynahan, Designing an Effective Sales Compensation Program (New York: AMACOM, ). Therefore, employers should establish a compensation philosophy.

Benefits programs should also be part of an employer’s compensation strategy. Employers have myriad options when it comes to designing a compensation plan, and they must consider and how it will fit into their overall strategy for recruiting and retaining employees.

Designing Effective Compensation As any entrepreneur knows starting a new business is a simultaneously horrifying, humbling, gratifying and exciting experience. These terms can also be used to describe the process of hiring a team to help you grow your startup.

The program's instructors are subject-matter experts highly respected for their real-world experience and expertise in the field. It's effective. Through this lively and participatory learning program, participants are immersed in the design and implementation of effective compensation programs.

It's fast. More and more sales leaders have turned to Compensating the Sales Force to help them discover problems in their present system and create a compensation program that works best for their needs.

Now, in the second edition of this authoritative, jargon-free handbook, sales compensation guru David J. Cichelli brings you completely up to date on /5(37). Effective training programs help employees to cope up with changes, think out of the box, survive the cut throat competition with a smile and contribute effectively to the success of organization.

Training programs need to be designed, keeping in mind the needs and requirements of employees. Great sales compensation programs are designed with more than just company goals and market conditions in mind.

They take into account what motivates salespeople, how to promote desired changes in reps’ behaviors, what sales leaders and HR teams need, and what the C-suite’s goals are—and they also consider how all of these may change over time.

Compensating the Sales Force has helped thousands of business leaders worldwide create sales compensation programs that drive sales performance, increase revenue, and trigger business growth.

Now, this new edition brings you fully up to date with new approaches for a business landscape where product/solution objectives and customer needs are in. Effective Sales Incentive Plans QUARTER 2, Overview The effectiveness of sales incentives and compensation from both the perspective of plan sponsors and plan participants remains elusive for many organizations because they rarely can maintain a balance between cost and Size: KB.

Designing effective sales incentive compensation can be difficult at first, especially if you feel like you are in a rut.

However, as you adapt and work with your team, you might find positive results with more regularity. The reasons for success discussed here can help guide your program's direction.

played by sales personnel and the significance of that role. Once that is understood the organization can determine what would constitute the ideal package of behaviors and results expected of the sales personnel.

And that is the true key to the design of effective sales compensation strategies and programs. Chapter 15 Implementation and Communication The rollout of the new fiscal year’s sales compensation program is both an implementation event and a leadership opportunity.

As an implementation event, it explains - Selection from Compensating the Sales Force, Third Edition: A Practical Guide to Designing Winning Sales Reward Programs, 3rd Edition [Book]. Often we are asked about tasting room staff incentives for wineries and best practices for a program.

An Incentive Compensation Program (ICP) is a tool used to motivate and compensate a sales professional to meet goals or metrics – over a specific period of time – to help achieve business goals. When well designed, an ICP should pay for itself.

7 Steps to Designing a Winning Sales Compensation Plan. At the beginning of each new sales year the realization that sales compensation plans need to be developed. The air begins to grow cold, no matter what time of year it is.

Learn more about designing efficient incentive compensation plans for sales managers. Evaluating the sales comp plan should be something you do ongoingly, not a one-time event. Define the questions to answer and the metrics you will use to measure success, and apply the same evaluation process several times during the year.

While analyzing. A variety of elements need to be considered when designing a compensation plan that is also compatible to the employee demographic and budgetary bridles.

The following should be included when designing a compensation plan: Various elements that will embody the total compensation offered to the employees. 5 Tips for Designing Successful Sales Incentive Compensation Plans By Christopher Cabrera, Xactly Corp.

Few leading indicators are more predictive of a company’s future sales performance than its incentive compensation plans. A compensation plan should be an incentive for the employee to fulfill company's goals.

It should also benefit the employer. Therefore, a compensation plan is typically a win-win for all parties involved. If you are looking for steps to develop a compensation plan, consider the following recommendations%(5). Analysis of "Marshall & Gordon. Designing an Effective Compensation System" College Vienna University of Technology Grade 1 Author Dominik Ulrich Hoppe (Author) Year Pages 9 Catalog Number V ISBN (eBook) ISBN (Book) File size KB.

Wrote the book, Designing Effective Incentive Compensation Plans (Amazon) and several publications related to sales compensation, broad-based plans and long-term incentive plans; Membership information: Certified Compensation Professional (CCP), Certified Benefits Professional (CBP), Certified Sales Compensation Professional.

xii Designing an Effective Pay for Performance Compensation System Executive Summary believe that the organization will actually recognize and reward that performance.

Those conditions are not likely to be achieved unless an agency meets certain requirements. These requirements include: 1. A culture that supports pay for performance; 2. “Sales Compensation Solutions’ provides actionable insights for designing an effective sales compensation plan.

The book addresses key themes – ensuring revenue growth along with profitability, aligning incentive plans with changing sales roles, addressing the challenges of quota setting, managing change and implementing global frameworks. Compensation isn’t just about being fair within the industry; it must also comply with federal regulations, such as the Fair Labor Standards Act.

While adhering to standards can complicate your compensation management, it will help protect your company against litigation and ensure fairness across the board for your personnel.

To Maximize ROI.

47184 views Saturday, November 14, 2020