February 12 by Sarah Van Caster

Organizations across industries are trying to tackle the same problem: What is the most effective, most cost-efficient way to motivate salespeople? Typically, this is done through sales compensation programs that get re-evaluated every year. The Alexander Group estimates that 90% of companies will make changes to their sales compensation plans this year. And, according to a recent survey from The Economist, 48% of sales compensation plans are deemed as ineffective, meaning they are not achieving their intended results. So these compensation programs, designed with the best of intentions to motivate salespeople and drive selling behaviors, are not working and are in need of an annual (often costly) makeover.

Sales Incentives: Do Yours Pass the Test?

Sales IncentivesWe can almost universally agree that our existing commission plans need improvement, and we are willing to update them – the question is, do we know the right changes to make? And, do we have the right processes and systems in place to properly manage sales incentives moving forward?

Answer the following set of questions by checking the statements that apply to your business to determine your organization’s need for a facelift to your sales incentive programs and possibly a new incentive compensation solution.

Do you pay variable compensation to your employees and/or partners?

Is this population with variable components > 50 people?

Do your current processes include manual efforts and/or data manipulation?

Is correcting compensation errors a common, time-consuming process?

Is it difficult to respond to quickly changing business needs due to system constraints?

Do you have an excessive number of commission disputes?

Is your sales team frustrated with limited real-time visibility to their performance: attainment, estimated earnings, payments, etc.?

Does your sales team distrust your data and spend time tracking their own performance and earnings (shadow accounting)?

Are sales behaviors misaligned with, and/or disconnected from your enterprise goals? Is your organization expecting to grow in the future?

Are you struggling to retain your best sales reps?

Are you prepared for new regulations like ASC 606 and the impact they will have on your sales compensation structures?

If you checked three or more boxes, then your current processes and solution(s) are not meeting your business requirements. It is time to consider a new incentive compensation solution. Reach out to Apttus today to learn more about Apttus Incentive Compensation and what it can do for your organization.


See why Nucleus Research found that applications like Quote-to-Cash and Incentive Compensation Management deliver 4.2 times the return on investment of core CRM applications. Download the full report today.

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