In a BLR webinar entitled ‘Commission Pay Plans: How to Motivate Your Sales Staff in a Roller Coaster Economy’, David Wudyka discusses a method of revitalizing an organization’s Commission Pay Plans (CPP) that involves refusing to use the sales force as a scapegoat for management snafus. At the end of the day, it’s an organization’s C-suite management that’s accountable for:
- Setting organizational budgets and performance targets
- Deciding which markets to penetrate and which products/services to prioritize
- Creating business structures and branding the organization
- Managing the product flow and quality controls
- Navigating the competitive environment out there
- Too many times, top managers push for changes in CPPs as a short-term ‘band aid’ solution to fix the bigger management issues within the company
- Don't let your CPP take the blame!
This is one of the major mistakes that managers of sales incentives plans make, whether the sales incentives are commissioned-based pay plans or bonus-based pay plans. Very often, the sales incentive plan takes the hit for any management snafus.
David Wudyka, SPHR, MBA, BSIE, is the founder and managing principal of Westminster Associates (www.westminsterassociates.com), a Massachusetts-based human resource and compensation firm that specializes in pay, performance, and productivity issues. He brings more than 30 years of professional HR and compensation experience to the table for clients around the country.