How do best-practice firms figure out whether they are getting an adequate return on sales compensation investments? By measuring and managing correlation between their sales forces’ performance and pay. In this archived webinar, Sal DiFonzo and Mike Rose review several commonly used sales compensation analysis tools that quantify sales compensation plan effectiveness.
Using a case study, including performance and compensation data from a sales organization considering sales compensation plan revisions, they illustrate how easily adaptable analysis tools can reveal important pay plan strengths and weaknesses. Among the topics covered are: how to define incentive compensation plan effectiveness; the importance of correlating pay and performance; measuring incentive compensation plan effectiveness; and implications for incentive compensation plan changes.