Your people can be your company’s greatest asset and it’s most unpredictable. The challenge for many companies is clear: how do you design compensation plans and incentive sales staff in a way that is transparent, effective and in line with your organization’s strategic and financial goals?
ACG understands the challenge. We’ve helped many companies work through the process to arrive at a solution that is unique to their situation, and that helps them grow, succeed and meet their revenue and profit goals.
To develop an effective and successful compensation program, an in-depth knowledge and analysis of the organization must be conducted, its place in the market needs to be determined and its strategies and plans for the future must be identified. To develop customized compensation programs to meet our clients’ individual goals, we utilize a proven process that includes the following steps:
- Conduct fact finding and diagnostic analyses
- Identify objectives/principles for incentive design
- Profile sales positions
- Determine eligibility
- Establish target compensation levels
- Determine incentive mix and upside
- Define performance measures and payout cycles
- Create payout formula(s) and coordinate with plan administrator
- Finalize/gain approval of detailed plan design
- Implement/ rollout plan (communication, plan documents, calculators, etc.)
With this methodology, we can ensure that our recommendations are relevant to support the business and able to be implemented.