Effective & Efficient Sales Compensation Programs

Building a Comprehensive Sales Compensation Program

Alexander Group helps clients develop comprehensive sales compensation program management practices by defining each of the four keys to sales compensation success:

1. Platform jobs: We start by implementing a framework for defining and grouping similar roles based on job content and deployment. This framework is the foundation for designing effective sales compensation plans by clarifying confusion caused by inconsistent job titles, unclear or varying job responsibilities and variability across regions, business units or teams.
2. Sales compensation guiding principles and component guidelines: We work with you to develop governing rules and best practices for the sales compensation program to consistently steer all compensation design decisions. These guiding principles are critical to ensure the consistent application of design components, especially when executing a decentralized design process across different business units, geographies or teams.
3. Role goalposts: Each company is unique and requires a set of values or ranges for each sales compensation plan component based on best practices and company needs. Goalposts create a mechanism to allow for flexibility in sales compensation plan designs while remaining within a consistent overarching framework. By incorporating goalposts into your sales compensation program, you empower your sales leaders to customize their team’s sales compensation plans to meet the needs of their unique team or customer base.
4. Sales compensation process and governance: Finally, we work with you to create a detailed description of the internal processes, roles and responsibilities, and timing for end-to-end sales compensation program management. Ensuring a clear governance structure and procedures allow organizations to efficiently manage the annual design process, make decisions, and ensure timely and consistent administration of the plans.

As your organization grows, your sales compensation programs must evolve to meet your changing needs. Alexander Group works with you to make sure that your sales compensation program management practices help you achieve your revenue growth objectives while ensuring an efficient infrastructure that supports cost and risk management.