Summing Up

The company must clearly define the roles and objectives of the jobs to be paid to design an effective sales compensation plan. Since sales increasingly shares its role with other departments, all company managers need a much broader understanding of how sales compensation works. Also, as the traditional sales role evolves within a business (responsibilities added or subtracted), management can employ the sales compensation program to send a clear message to the organization about the change.

Whether a current sales job has changes in responsibilities or the company creates a completely new sales job, the sales compensation plan design requires decisions about a number of key elements. These include eligibility, total target compensation, ...

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