Five Reasons Why Sales Compensation Plans Fail
Experience shows that as the sales organization grows revenues and profits, the management challenges also grow. We have conducted considerable research involving many industries to identify the challenges management faces in sustaining productive, high-performing sales organizations. Of particular interest to us has been the role that sales compensation plays in contributing to and sustaining sales force motivation and productivity. We find five indicators that suggest that a sales compensation plan is slipping into ineffectiveness. Let's consider these indicators relative to the situation that Hal Jones finds himself in at Perfect Flap Envelope Company.