Are sales incentive schemes really effective?

Now more than ever, companies are operating in a very competitive market. Therefore, sales and marketing strategies must adapt and evolve to become more specific and complex to help companies attain objectives; which in turn, are also becoming more detailed and precise. For example, the question of “How much do we sell?” is only the most basic indicator of effectiveness, with increasing importance now given to questions such as what, how, when where and to whom do we sell.

Considering this previous scenario, sales force incentives constitute an important driving factor for increasing effectiveness, and organizations must review them on a regular basis. According to a recent research conducted by Willis Towers Watson in Mexico, on average, organizations adjust their incentive schemes twice a year and may make significant changes to the scheme every two years.

Now might be time to evaluate — and adjust — your organization’s sales objectives and strategies. As a good starting point for measuring where your company stands, we suggest you ask the following questions:

If you can answer “yes” to all questions, then congratulations! Your company responds to current challenges in an efficient manner. If that’s not the case, then it’s time to review and adjust your incentives scheme to ensure success in your sales strategy.


 

Jorge Romero is a senior consultant with the Talent and Remuneration practice at Willis Towers Watson. Jorge advises Mexican companies and multinational corporations in the design and implementation of Human Resources strategies, integral projects of talent and compensation, as well as in the design of variable compensation plans tied to performance.

Categories: Compensation, Employee Engagement, Health and Group Benefits, Latin America | Tags: , ,

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