Exposé: Fix Your Compensation Plan Flaws Before 2017

Exposé: Fix Your Compensation Plan Flaws Before 2017


“Flaws in your compensation plan will reflect in your lack of sales growth.” ~ Danita Bye 


“I have a nagging feeling that our compensation plan is complicating our sales strategy. It doesn’t feel aligned. Plus, it doesn’t seem to drive the behavior or performance we want. Can you help?”I get lots of calls like this one during 4th quarter – strategic planning season. Business owners and executives are committed to fueling their company objectives and growth plans for 2017 in light of market changes and competitive threats (as well as growth opportunities.) They need an objective evaluation of their sales compensation plan.

How’s your sales team doing? Is your entire sales team focusing in the same direction as company leadership, regardless of role and metrics?

If not, you need a check-up to ensure an aligned compensation plan.A performance-optimized compensation plan drives both top line and bottom line results. If neither of these are happening, there’s a possibility your compensation plan is riddled with flaws.

One of the questions we tackle in our 2016 Compensation Whitepaper is, ‘Does your compensation plan complicate your sales strategies?’ This is one of the Common Mistakes with sales compensation plans that fail to deliver the sales growth you want.

We invite you to read our complimentary 2016 Whitepaper, Compensation Compass –  15 Common Mistakes to Avoid in a Sales Compensation Plan.

In the next post, I’ll tell you why your current compensation plan (designed for Baby Boomers) might not be attracting Millennials.

Leadership lesson:  A shift in sales strategies usually calls for a shift in compensation.

Leadership question: Is your sales compensation plan driving the sales results you need to exceed 2017 goals?

​​© Copyright Danita Bye, 2016

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  • Rene Zamora
    Posted at 09:19h, 14 November Reply

    All great reminders. The term guaranteed commission instead of salary is wonderful. I have not used that but it is a no brainer. I also appreciate #15 which reminds that a compensation plan does not change culture, or as I like to say is not a management system, but rather part of a management system.

    • Danita
      Posted at 05:49h, 18 November Reply

      Thanks for your insights, Rene. You’re also correct in it being a “part” of a management system. Sometimes we hope it’s a silver bullet. It’s not. It’s part of a management system

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