SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sales departments are generally satisfied with their sales compensation program, according to the recent “2013 Sales Compensation Practices Survey,” sponsored by the Alexander Group (AGI). Survey results provide in-depth insight into sales compensation program practices, including governance, mid-year changes, risk assessment, administration, additional rewards, program communication and sales confidence.
“The high participation in the survey confirms sales compensation stakeholders are looking for market best practices,” observed David Cichelli, survey editor and senior vice president of AGI. One of the standout findings is the lack of formal risk assessment protocols for sales compensation programs. “Sales compensation programs are great at rewarding success, but they also harbor many downside risks,” Cichelli added.
Additionally, the survey also confirmed the wide range of compensation cost of sales (CCOS), making cost generalizations difficult to prescribe. “Companies need to benchmark their costs against peer competitors,” Cichelli said.
- Sales Compensation Governance: 38.9 percent report that sales management/sales operations own final accountability for the sales compensation program.
- Mid-Year Plan Changes: 47.3 percent report no mid-year changes (as reported in September).
- Sales Credit: 54.1 percent of the reporting companies credit sales at time of order booking.
- Sales Credit Splits: Almost 75 percent of all reporting companies have some form of sales credit splits.
- Automation Solutions: 61.8 percent of the reporting companies still use some type of internal solution to administer the sales compensation program.
- Risk Assessment: 46.8 percent confirm the use of a formal risk assessment process.
- Payment Timing: Most companies make incentive payments within 45 days of the close of the measurement period.
- Contests and Spifs Use: One-third of the companies do not use contests or spifs.
- Signed Acknowledgement: 75.6% require sales personnel to provide a signed acknowledgement.
Participants provided data in August and September. More than 200 sales departments representing more than 215,000 sales professionals participated in the survey. To view more survey results, download a free executive summary at www.salescompsolutions.com.
About The Alexander Group, Inc.® ̶ Growth Through Sales
Alexander Group provides sales management consulting services to the world's leading sales organizations, serving Global 2000 companies from across all industries. To learn more about Alexander Group's services, visit www.alexandergroup.com.