concurrent session: sales performance: compensate your right€¦ · sales compensation‐ the...

March 18‐21, 2014 | Hilton San Diego Bayfront

Concurrent Session: Sales & MarketingPay for Performance: Compensate YourSales Folks Right

Moderators: Subadhra Sriram, Global Editorial Director,Staffing Industry Analysts

Panelists: Mark Donnolo, Managing Partner, SalesGlobe and author ofThe Innovative Sale Stacie Habegger, Chief Sales Officer, The Act‐1 Group, Agile•1 Conor Smith, President, The BOSS Group Scott Wintrip, President, Wintrip Consulting Group and StaffingU

THUR, MAR 20 10:30 AM SAPPHIRE M

Sponsored by:

Sales Compensation‐The Strategic ViewConnecting the Corner Office to the Front Line

www.SalesGlobe.com770 337 9897

March 2014


Knowing Your Market‐ SIA and SalesGlobe Staffing Incentive Comp Survey

Participate in the SIA Surveysurveymonkey.com/s/2014StaffingSurveyOpen until April 30


Plan Complexity

“I’m not clear on exactly how I’m paid. I just hope the check is right.”

45%

Some Top Issues

Setting Effective Quotas“You hit your quota and get rewarded with a bigger quota next year. It’s not related to opportunity.”

52%

Driving Solution Selling“The plan doesn’t support solution selling. It drives an aggressive sales process and we need to be more consultative.”

36%

Keeping the Organization Engaged

“Our reps aren’t hitting their objectives in this economic environment. We need to keep them focused.”

29%

Supporting the Sales Strategy and Sales Roles

“Our plan promotes behaviors that are different than our strategy.” 39%

Differentiating Top Performers“Our highest earners aren’t necessarily our highest performers. We can’t attract and retain the right talent.”

42%


Strategic Context: The Revenue Roadmap

The Revenue RoadmapInsight

Voice of the Customer

Macro Market

EnvironmentCompetitor Performance

Business Performance

Enablement

Sales StrategyProducts & Services

Segmentation & Targeting

Value Proposition

Approach to Market

Customer CoverageSales

ChannelsSales Roles & Structure

Sales Process

Sales Deployment

Incentive Compensation

& QuotasRecruiting & Retention

Training & Development

Tools &

Technology

Charts an actionable growth plan.

Matches roles, resources, and process to customer needs.

Aligns execution with the growth strategy.

Provides information for planning and strategy.


C‐Level Goals & Sales Roles

TargetPay

Pay Mix1

2Upside Potential

3Performance Threshold

4

5Levels & Timing

6

Measures & Priorities

Evaluation

12Operations

11Governance

10

The Sales Compensation Diamond

Objectives & Quotas

9Team

Alignment

8Mechanics

7


Top Questions C‐Levels Ask

Are we driving the right behaviors? 65%

What are the financial returns and risks? 53%

Does it align with the strategy? 40%

How will it affect recruiting, retention of top people? 34%

Is it easily understood? 20%


C‐Level Question Dimensions

oHow is each of the five C‐Level Goal areas represented by the plan or by how we manage?

QuestionRepresentation

Dimension

oWhat behaviors will this motivate that support or conflict with our C‐Level Goals?

Motivation

oWhat are the numerical, measurable results we expect in each of the C‐Level Goal areas?

Results

oWhat other factors, beyond the compensation plan, are we counting on for these results?

Dependency

oWhat are the risks of the program not working or the dependencies not happening as planned?

Risk

oHow can we simplify the approach and make the message clearer?

Simplicity

oHow will we successfully implement this change and what is the C‐level role in that change?

Change


Pay for performance: Compensate your sales folks right

Conor Smith, President, The BOSS Group


The BOSS Group approach

Pay plans must be simple and transparent Recruiters and sales people are equally important and should have equal earning opportunity We believe that the best approach is to have a full suite of competitive benefits and perks other than simply paying at the highest end of the spectrum


What works for The BOSS Group Target of no more than 50% of total compensation coming from base salary Tiered commission program based on experience and tenure. Base salaries remain steady over time. Pay off margin dollars with carrot for exceeding plan and a stick for being below plan


Challenges

Need to be creative when recruiting top performers who are used to higher base salaries Integrating temp and perm pay plans in branches that have both services Lead sharing compensation


Recommendations

Meet two times a year to review compensation projections / run rate of how each employee will end the year. Make adjustments if needed. Utilize resources from SIA to benchmark. Be transparent with your play plans and pay communication. Establish good will and trust with easy to understand plans.


Final Piece of Advice

Never let make your A players come to you for a pay increase. Be proactive in compensation management, planning, and communication.


Winning Compensation ‐ Sales

Stacie HabeggerChief Sales OfficerThe Act•1 Group


Winning Compensation ‐ Sales

Compensation should be balanced and geared around:

Accessing New Clients Existing Client Expansion Profitability Longevity


Leveraging Customer Loyalty

Customer Loyalty

White Papers Press Releases Marketing Material Joint Speaking Engagements

A customer’s open testimony can be directly correlated to the relationship that a sales executive built and the resulting loyalty they have earned through their efforts. It makes sense to compensate a salesperson for this kind of achievement.


Common Platform Strategy

Shared Principles or Values

“We win together” Provides the opportunity to reward around non‐traditional milestones Can address efficiencies not customary to standard or conventional plans –

sales cycle time, speed‐to‐deployment, reduced contract process Joint Speaking Engagements Compensation towards Innovation – “Big Idea”

Uniting a common platform for goal achievement within structures that support the sales strategy is a smart way to promote teamwork and to keep everyone on a path toward a common goal..


Compensation Essentials

Simple and straight forward, designed to promote specific behavior An employee should be able to quickly determine whether the success or

failure of any action will impact their income and to what degree. If a salesperson cannot quickly calculate personal gain or loss that results

from a business shift, the plan is too complicated. If an employee is not able to access data surrounding their progress or

results, they are not able to respond quickly enough to impact change. Lack of back‐up promotes an element of distrust. “trust me” is not a useful

way to engage.

.


What’s Not Working

Complexity

Configuration

Comfort

Continuity$

Revenue & Profit Gain

$$$Revenue & Profit Drain



Convergent Compensation Model

Modest Guarantees

Aligned Rewards

Zero Cognitive Dissonance

1 2

3

4

1. Incorrect behaviors

2. Lost motivational value

3. Compensation comfort

4. Sustainable system



Driver

ExpressiveAmiable

Analytic

PreciseData

Regular Recognition

Substantial Upside

Clear Connections

SOCIAL STYLE Model™ byThe Tracom Group

Behavioral Component



Compensation Examples


Modest Guarantees Low base, highcommission

Choice between riskand reward

Yearly enrollment period

Zero Cognitive Dissonance

There’s an appfor that ROI math Deal sheets

Aligned Rewards

• Heavy on new business development

• Driver and expressive majority

• Competitive culture

• More farming than hunting

• Improved communication

• Driver and amiable majority

• Collaborative culture

• Hunting and farming

• Referral focus• Driver and analytic majority

• Competitive culture

#1 #2 #3


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concurrent session: sales performance: compensate your right€¦ · sales compensation‐ the...

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