Achieving sales performance improvement may lie beyond traditional sales compensation

Achieving sales performance improvement may lie beyond traditional sales compensation

Posted on March 16, 2015

Every year, Deloitte Consulting LLP surveys sales leaders about the state of their sales forces and sales compensation practices: Are they effective? Are they meeting targets? Are sales leaders satisfied with them? For the past three years, from 2012 to 2014, both achievement of targets and satisfaction with sales productivity have remained flat – hovering at or below 50 percent in both areas. This despite a majority of responding leaders (65 percent) who believe the economy has already recovered or would by the end of 2014.1 Are sales compensation practices to blame for the mismatch between a growing economy and the failure of sales forces to take advantage of the opportunity?

Incentive pay has historically been one of the primary motivational tools in a sales leaders’ tool box to drive behavior and results. But results of the 2014 survey may offer insights into other factors organizations should examine to improve sales performance. For example, the learning and development provided to sales representatives, how quotas are set and communicated, how sales representatives are selected and onboarded — these are just some of the elements that make up a broader sales performance ecosystem, along with sales compensation.

Read more about the 2014 survey results, the trends revealed over time, and the factors that influence sales performance in our newest survey report: Great sales expectations: The growing gap between sales force expectations and the influence traditional sales compensation has on performance.

1http://www2.deloitte.com/us/en/pages/human-capital/articles/sales-compensation-survey.html

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