Assessing Sales Compensation Plans for Effectiveness

Sales Compensation Plan Assessment & Benchmarking

Sales compensation-related costs can account for your most significant sales expense. That’s why it is essential to understand how you use these funds to achieve your business objectives.

But how do you know whether your plans are working for you? Companies seek out sales compensation experts to answer these common questions:

• Are our plans aligned with our goals for this next year? Unfortunately, a plan design that has worked in the past may not necessarily drive the right behavior in the future, especially if the sales strategy, job, product offerings or buyers have changed. That is why an annual sales compensation plan design review is critical. Alexander Group can help you properly review your plans to ensure they remain aligned with your company goals and job responsibilities, highlighting areas for improvement based on previous outcomes.
• How do our plans compare to the market? Understanding sales compensation trends and best practices in the market is critical for building a best-in-class sales compensation program that helps you attract and retain top talent. A detailed plan review will indicate how your plans compare to the market. We leverage our proprietary benchmarks, plan design best practices, and short- and long-term opportunities to evolve your plan designs.
• Are our plans cost-effective? Am I getting a good return on investment? Many clients have plan designs that were cost-effective when first implemented. However, as your company scales, your plan designs may no longer meet your financial goals. We help you benchmark your compensation cost of sales and identify the drivers of cost inefficiency in your current plans.

Alexander Group brings the expertise of working with leading clients to ensure your plan design is market-competitive, meets your strategic goals and is cost-effective. In addition, you will benefit from our detailed assessment and benchmarking expertise and collaborative design process.

Whether you want to redesign your plans independently, require advice or need a comprehensive plan redesign, Alexander Group has the proven frameworks and experience to ensure you make the most of your sales compensation investment.