Quick 12-Point Plan Health Check…

You might have a sales compensation plan problem if:

  1. More than 10% of reps are confused about how they get paid.

  2. Managers frequently need to explain or reinterpret the sales compensation plan.

  3. You frequently rely on SPIFFs or one-time bonuses to fix behavior problems and issues.

  4. Sales and Finance frequently disagree on the accuracy or fairness of payouts.

  5. The sales compensation plan has legacy rules or formulas no one can explain or justify.

  6. Reps maintain their own shadow spreadsheets to estimate pay.

  7. You regularly make manual plan exceptions or adjustments.

  8. Top performers frequently express dissatisfaction with how they are rewarded.

  9. Plan changes take more than a month to design and roll out.

  10. There is no quarterly or annual comp plan review process in place.

  11. Calculations are manually processed for payout on Excel spreadsheets.

  12. Participants who perform the same work are compensated differently on different sales comp plans.