I start my Blog with one of my favorite topics: "Sales Incentives". Incentives drive behavior. There are two areas in Human Resources where incentives play a fundamental role:
- Top Executives & Board Members
- Sales Force
In the sales environment, the design and communication of sales incentives is key to achieve the business goals. I have experienced mergers and changes in strategy where sales incentives have been fundamental to reach the business objectives.
The success factors of a sales incentives plan can be summarized in three key points:
- First of all, a design aligned with the business strategy stresses the need involve business managers to ensure the plans incentivize the right behaviors. It is also important to include finance in the design team as they will bring a pragmatic view on measurement and reporting. The HR lead will play a double role as:
- Compensation Expert, to ensure a best in class design to influence the desired sales force behavior.
- Design Coordinator, involving all parties so all points of view are taken into account, such as affordability, implementation, etc.