Yesterday’s Advisor featured consultant David Cichelli’s take on how different incentives are required for different levels of sales personnel and different situations. Today, his suggestions for different product mixes, flat growth, and sales retention, plus an introduction to a timely (and free) webinar on tops trends for 2014.
Cichelli, senior vice president at the Alexander Group, offered his tips at WorldatWork’s Total Rewards 2013 Conference and Exhibition.
Diverse Product Mix
Here are the diverse product mix conditions that suggest the approaches below:
Many product divisions, one sales force
Balanced outcomes required
Varying incentive value due to varying volumes
Degree of sales difficulty differs by product
Territory Rep
Account Manager
Key Account Manager
Bold
Formula
Choices
Stand-alone rates for each revenue source
Modifier based on cross-sell ratio
Modifier to reward preferred strategic revenue
Account portfolio planning KSO (key sales objective) rewards
Enhanced credit for diversity of sales
Growth in Flat Markets
Cichelli says that under the following conditions of flat markets, the approaches below will be feasible:
Core product growth less than 10%.
There are new account objectives.
Retention of existing accounts is important.
There is a new product push.
There is new segment selling.
There are new value propositions.
Territory Rep
Account Manager
Key Account Manager
Bold
Formula
Choices
Reward for absolute growth
Commission on new accounts
Modifier for new account
Modifiers for:
New Products
Retention
Solutions
Bonus Plan flip to commission for above quota sales
Reward for revenue growth/new contracts only
Reward for longer term contracts—declining commission formula
Free webinar! (Thanks to sponsor SilkRoad!) Top 7 HR trends that are here to stay—One sure thing about HR—it’s going to keep changing. What’s still hot for 2014? Join us for an interactive webcast on December 19, 2013 to find out. Learn More
Retention of Sales Personnel
Cichelli offers these conditions that might require the efforts below:
Turnover is a problem.
Training time is long.
Seasoned sellers are an asset.
Cost to replace is high.
Territory Rep
Account Manager
Key Account Manager
Bold
Formula
Choices
Career-to-date revenue performance base pay or incentive steps
Provide certification levels that offer higher base pay and/or incentive payout rates
Have rolling
3-year payout schedules tied to contract performance
If you don’t look at the base pay metrics for your organization, you run the risk of missing an opportunity to optimize your strategy to ensure that it fits in with your overall compensation philosophy.
There are many types of both internal and external compensation metrics that can be used to achieve the goal of improving an organization’s overall compensation strategy, including compa-ratios and salary penetration ranges. It’s also important to take a close look at a number of factors, including annual payroll, average hourly rate, number of employees, and more.
As we look at metrics and incentives for the new year, what are the trends we should pay attention to? Are the hot topics of 2013 going to be hot in the new year?
In today’s fast-paced work environment, HR professionals cannot afford to be late adopters of emerging trends.
Join us on December 19 for a free 60-minute webinar that will focus on the top HR trends to emerge in 2013 and why those trends will remain at the forefront of business conversation in 2014. Your organization should be making it a priority to know and adopt these concepts now!
Register today for this interactive webinar, and learn how to what’s going to stay hot in 2014. Thanks to sponsor SilkRoad, it’s free to all participants!
Learn the top 7 HR trends with staying power for 2014!
Top HR trends for 2014? What’s carrying over from 2013? Join us for an interactive webcast on December 19. Earn 1 hour in HRCI Recertification Credit. Register Now
What You’ll Learn
Why organizations need to pay attention to many emerging HR trends heading into 2014
The 7 HR trends that aren’t going away anytime soon
Mobile recruiting
Social collaboration
Gamification
Wearable tech
Contingent workforce strategy
Employee wellness
Knowledge transfer
How these trends will likely impact strategies for recruiting, collaboration, employee engagement, wellness, and more going forward
How to become an ”effective adopter” of the trends discussed—so you can position your organization for continued success
Register now for this free event!
SilkRoad Sponsored Webinar
The Top 7 HR Trends from 2013 that Are Here to Stay
Thursday, December 19, 2013
2:00 p.m. to 3:00 p.m. (Eastern)
1:00 p.m. to 2:00 p.m. (Central)
12:00 p.m. to 1:00 p.m. (Mountain)
11:00 a.m. to 12:00 p.m. (Pacific)
Approved for Recertification Credit
This program has been approved for 1 recertification credit hour toward recertification through the Human Resource Certification Institute (HRCI).
Join us on December 19—you’ll get the in-depth The Top 7 HR Trends from 2013 that Are Here to Stay webcast AND you’ll get all of your particular questions answered by our experts.
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Train Your Entire Staff
As with all BLR/HRhero webcasts:
Train all the staff you can fit around a conference phone.
You can get your (and their) specific phoned-in or emailed questions answered in Q&A sessions that follow each segment of the presentation.
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ABOUT YOUR SPONSORS:
SilkRoad is a leading provider of cloud-based, end-to-end HR solutions that enable customers to find, attract, develop, and retain the best talent possible. Silkroad strives to build value for its investors by delivering innovative solutions that enable customers to attract top talent and retain happy employees that drive their bottom line. SilkRoad’s award-winning Life Suite includes Talent Acquisition, Talent Development, and HRMS solutions that are delivered through a Talent Portal to drive greater engagement, collaboration, and user adoption. The suite is easy to deploy, easy to use, and affordable for businesses of every size.
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About Your Presenter
Sharlyn Lauby, SPHR, is president of ITM Group Inc., a consulting firm that focuses on developing training solutions to engage and retain talent in the workplace. The company has been named one of the Top Small Businesses in South Florida.
She is also the author of the blog HR Bartender, a friendly place to talk about workplace issues. The blog has been recognized as one of the Top 10 Business Blogs Worth Reading by the Society for Human Resource Management (SHRM) and SparkHire’s Top 25 Must-Read Blogs for Employers.