Learning Options

Sales Compensation Design—Developing Next Year's Plan
Seminar

Develop the Most Effective Incentive Plans for Attracting, Motivating and Retaining Sales Personnel

This intermediate-level seminar presents principles for designing next year’s sales compensation program. You’ll cover options including base salary, straight commission and combination plans with base salary and variable incentive compensation. Special focus is given to evaluating current plans, managing the design process and selecting a sales compensation formula. All attendees will receive a copy of David Cichelli's book, Compensating the Sales Force.

• Align sales rewards with company sales objectives
• Assess current practices
• Understand key sales compensation concepts
• Set target pay, mix and upside potential
• Build the right formula
• Establish policies for sales crediting, quota management and account assignment
• Select the right automation support
• Follow a proven four-phase redesign effort for current practices

Who Should Attend

The seminar is designed for professionals involved in designing, implementing and administering sales compensation plans, including sales, human resources, finance and marketing.

What You Will Learn

Key Concepts in Sales Compensation

• Why sales compensation?
• Types of variable compensation plans
• Basis of sales compensation
• Myths and realities
• Three categories of sales contact jobs
• Direct and indirect jobs
• Sales compensation — pay components

Sales Compensation Principles

• Eligibility
• Target pay rate
• Mix and leverage
• Performance measure
• Weighting measure
• Performance scaling
• Formula types
• Performance and pay periods
• Base pay management

Menu of Sales Compensation Formulas

• Formula types
• Target commission rate
• Target pay commission formula
• Target pay bonus formula
• Team compensation decision tree

Sales Compensation Design Process

• Four phases to sales compensation design
• Assessment
• Plan design
• Support programs
• Implementation

	Credits Recertification: 1 credit CEUs: .75 PHR/SPHR/GPHR recertification hours: 7
	Faculty