Sales Research Publications

Sales Compensation & Performance Management

2009 Sales Compensation/Performance Management Overview

Welcome to our 2009 Sales Compensation & Sales Performance Management (SC/SPM) report. 1,051 companies responded to this year's survey and are reported in the aggregated results that follow. As seen below, the largest single segment--one-third was companies with annual revenues larger than $1Billion. The next largest-one quarter-was the opposite end of the spectrum--firms with annual revenues less than $50Million. The remainder was divided fairly evenly among the other three revenue brackets.

 In the 2009 report, we present the Top Ten trends surrounding sales compensation and performance management, offering key findings and brief commentary on each. To complete this year's analysis and give an overview of the marketplace as a whole, we present the data aggregated across all responses received. For a complete list of all the metrics from the study, send an email to Laura Andrus at: laura.andrus@csoinsights.com.

 These top ten trends tell a story of what has happened in the past year. To say the least, given the financial slowdown on a global scale, the tightening of credit, the increase in unemployment, the disappearance of trillions of dollars of personal and corporate net worth, it has been a challenging time. And a hardening time as well. Here are a few examples supporting this contention:

• Target Compensation is DOWN
• Variable Pay Component is DOWN
• Sales Expenditures as a % of Annual Revenues is DOWN
• Sales Rep Assigned Quotas are UP
• Percentage of Reps Achieving Quota is DOWN
• Nearly 1 in 4 Firms Expect <50% of Reps to Make Quota  

These are indicators of an extraordinarily adverse and difficult business climate. But if adversity is the mother of invention, perhaps this present environment will give birth to new compensation philosophies and approaches. For too long, successful sales reps have been defined by a narrow metric: revenue booked/quota attained. But does this truly define sales excellence? And is it best serving all constituents?

Table of Contents:

• Percentage of Reps Expected to Make Quota in Comp Plan Design
• Percentage of Sales Force Achieving Quota
• Average Annual Quota Assignment per Rep
• Sales Compensation Spend as a Percentage of Annual Revenues
• Utilize Accelerators in Compensation Plans
• Percentage of Reps that Reach Accelerators
• Impact of Compensation Plans in Driving Selling Behaviors
• Selling Behaviors Impacted by Compensation Plans
• Variable Compensation Payment Error Rate
• Biggest Challenge When Rolling Out Compensation Plans
• Going Forward Recommendations

 

$1495.00