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July 04, 2010
Differentiating Compensation Pay Plans Between Groups

In a BLR webinar entitled ‘Commission Pay Plans: How to Motivate Your Sales Staff in a Roller Coaster Economy’, David Wudyka discusses the possibility of differentiating between Commission Pay Plans (CPPs) between groups in the company e.g. CPPs between marketing departments and sales departments, especially based on the variable components. He provides the following information about differentiating CPPs in an organization:

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  • There is a difference between sales and marketing and some organizations may not understand that there is a difference. There can also be a difference between other groups
  • An incentive plan can be created for both marketing and sales
  • Sales personnel and marketing personnel can seem to have strong links. However, sometimes the connection is not very clear
  • A combined approach that considers elements of both groups could be used. Such elements can include advertising from the marketing group and how such marketing was used to generate sales by the sales group

David Wudyka, SPHR, MBA, BSIE, is the founder and managing principal of Westminster Associates (, 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. He speaks and writes frequently on HR and compensation issues, and he earned his master’s degree from Syracuse University.

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