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This report includes a summary of key changes, including the salary level test and salary basis test.

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May 05, 2010
Sales Compensation: Achieving Success Is A Matter of 'Alignment'

In a BLR webinar entitled "Sales Compensation Strategies: How to Motivate and Re-Energize Your Sales Staff in a Challenging Economy," Dan Kleinman, principal of Dan Kleinman Consulting, a compensation and human resource consulting firm, explained that companies that do well in the long term have an overall objective: "alignment." Companies with alignment demonstrate the following characteristics:

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  • Vision for the future
  • Objectives that need to be accomplished in the short term as well as the long term
  • Sales force profile, i.e., knowing the right fit between the people and the sales force
  • Performance metrics
  • Appropriate compensation, i.e., reward for result

To accomplish alignment, look back before looking ahead.

  • Take inventory of your situation.
  • Address misalignments.
  • Ensure trust exists between sales staff and management.

Dan Kleinman is the principal of Dan Kleinman Consulting, a California-based compensation and human resource consulting firm. For the past 18 years, he has served as an independent consultant for a broad spectrum of regional, national, and international companies, providing compensation, performance, organizational planning, and reward-system design services. He may be reached at

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