Sales Incentive compensation plan for a logistics company
With rapid market changes and new service offerings, the existing field sales incentive compensation plan was falling short of competition and not aligned to the business objectives of the company.
- Competitive benchmarking: Identified the range of plans and compensation levels among the most significant competitors.
- Scenario analysis: Developed alternative plans and levels of payouts tied to behaviors and financial outcomes.
- Financial modeling: Analyzed plan impact on the sales personnel short-term and long-term pay and the company financial – back tested as well as forward tested based on the sales performance required to hit the business unit’s top line revenue and net profit objectives.
- Action Plan: Recommended best approach for rollout, training and administration of the new plan.
- Competitive sales compensation plan.
- Increased sales productivity, cross-selling, and employee satisfaction. Reduced sales force turnover.