Caps and thresholds for Business Development roles ?

One of my friends recently asked me this question : I was hoping you could help me with a Sales Commission question. To set the scene, we want to target quality Business Development people – niche skill set and specialist experience for this engineering company, Hay level 19-20, on about AED 50,000+. For these type…

Day One of the 17th Compensation and Benefits Forum from IIRME – Recap

It’s been a busy month as I attended and spoke at 3 HR conferences in 30 days ! It’s a bit tiring but I really enjoy meeting new people, hearing from different organisations and opening my mind to new concepts. So this week will be a “special” : I’ll write 3 posts, two of them…

All you need to know : common pay challenges and how to handle them

Some time ago, I published a resource page which I encourage you to explore and share : All you need to know: from compensation surveys to salary ranges and salary review. This page has proven very useful and many of my readers sent me emails to say they appreciated having a compilation like this available…

Prospecting or existing customers ? What do you focus on in your sales incentive plan ?

“Need a sales comp plan that incentivizes prospecting, but does not increase the overall percent for my entire sales compensation. So, we’ll need a plan that pays more for new sales and less (or less over time) for sales to existing customers. Suggestions?” This recent question was asked on LinkedIn in the Compensation & Benefits…

Equity theory and the design of your incentive scheme

As part of the 16th annual Compensation & Benefits Forum organised by IIRME last month, I delivered a one-day workshop on how do design a recognition and retention scheme. I mention a few motivation strategies at the outset of the workshop. The equity theory in particular holds my attention. What is equity theory ? The…

What is the difference between a bonus and an incentive ?

A quick post today, on the difference between a bonus and an incentive. We often use these two terms without making a true distinction, but in truth, they are slightly different. Both of them cover elements of compensation that go above and beyond the normal, recurring income of the employee (base pay or basic +…

The shelf life of compensation plans

One of my friends contacted me recently, complaining that the Sales Incentive Plan that his company introduced a little over 4 years ago, does not seem to “work” any longer.The Sales people are not motivated, results are down and employees are complaining about how their incentive is structured. He even says that it is whispered…