Chapter 16

Program Assessment

Senior management often asks, “How effective is the sales compensation program?” It’s a simple question. The company spends significant monies on the sales compensation program.

But is it working? Is the company getting the right sales force focus? Is the sales force motivated by the pay program? Do the results justify the expenditure?

Use the following five factors to assess the sales compensation program:

•   Strategic alignment: How well does the plan support the company’s business objectives?

•   Employee motivation: Do sales personnel strive to earn incentive pay by excelling on the program performance measures?

•   Best-practice variance: Does the pay plan follow best practices?

•   Return on investment:

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