David Cichelli Blog: Jan 2020

Sales Comp 2020-What Are Sales Leaders Thinking?

Posted on January 21, 2020 under Blog

What are sales leaders thinking about for their sales compensation program for 2020? Just released, The 2020 Sales Compensation Trends Survey provides insights into sales compensation planning for 2020.

Here are some of the survey highlights:

  • 90% plan to make changes to their 2020 sales compensation plans. The most common change is to update performance measures. Top performance measures for 2020 include sales revenue, new accounts and units/orders.
  • Sales leaders expect sales revenue to grow 6% in 2020. However, they are more cautious about 2020. Only 39.8% of the survey respondents have above-average confidence they will achieve their revenue objective for 2020. This is a drop from last year’s confidence of 57%.
  • 3% is the projected increase in incentive payments for 2020.
  • 4% of the surveyed companies plan to increase headcount in 2020. Turnover is expected to be 10%, which is consistent with previous years.
  • Almost 90% of all participants provide a base pay to their sellers with or without a draw or guarantee. 9% of the reporting companies plan to give base pay increases in 2020, a slight decrease from 71.3% in 2019. 3% is the median pay increase for companies planning base pay increases in 2020.

More than 120 companies participated in the study with pay plans incenting over 20,100 sellers. Half of the participating companies of this cross-industry survey have sales of more than $1B. Download a copy of the Executive Summary.