Sales incentive / commission
schemes or pay plan
Meridian believes that an effective sales incentive, commission
scheme or pay plan is one that drives and rewards behaviors&
actions which support the achievement of business results.
We are confident that the majority of our clients or prospective
clients would concur with this philosophy. Yet on numerous occasions,
when we have analysed our client’s schemes, rewards are
given regardless or results. Even worse, sometimes behaviors are
rewarded that are directly opposed to the achievement of the business
Incentive schemes can only be designed when the organisation
understands the links between activities and results. If this
understanding is missing the impact of a scheme will not be understood.
Meridian spends time helping clients understand this link and
then developing a scheme that will drive the right behaviors.
Communicating and reporting on the scheme are also vital elements.
It must be simple to understand and simple to administer. Sales
people need to now how the scheme works and how they are doing
at any moment in time.
Meridian can also advise on what proportions should be rewarded
on short and long term schemes. Whilst the business may operate
on quarterly or yearly objectives, it will only achieve this if
sales people achieve their daily objectives. This balance needs
to be reflected.
here to find out more about Meridian’s approach to constructing
tailored incentive schemes.