A New Way to Compensate Sales Teams

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A New Way to Compensate Sales Teams

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Although the business environment is completely different than it was 20 years ago, the way most companies structure sales quotas and compensation has not evolved to keep up. To effectively compensate your sales team, follow these five steps. First, companies should determine their go-to-market maturity and set goals accordingly. They should then identify what is actually driving growth. Next, they should assess their current performance, evaluate their teams, and finally, create a new plan that more closely resembles their compensation goals.

Managing sales teams has never been easy. It involves dealing with independent personalities, frequent turnover, training challenges, and disappointing pipelines. New layers of technology are added frequently, and while these tools are designed to make jobs easier, they often frustrate employees instead. I talk to hundreds of sales leaders each year at B2B companies of all sizes, and a common theme has emerged: Although the business environment is completely different than it was 20 years ago, the way most companies structure sales quotas and compensation has not evolved to keep up.

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