Sales Compensation Teaming: Myth or Reality?
Scottsdale, Ariz., January 24, 2013 – Sales compensation teaming has always been considered a popular technique for rewarding sales personnel. However, the results from the recent “2013 Sales Compensation Trends Survey,” sponsored by the Alexander Group and WorldatWork, indicate that the application of sales compensation teaming is more narrow than popular.
Nearly 41 percent of the surveyed companies use a combination of individual and team measures in their sales compensation plan. Only 2.5 percent use team measures solely. Of those with combined individual and team measures, individual measures are the highest weighted representing on average, 70 percent of the value of the incentive. “Team incentives are best used when the team members must coordinate sales efforts with each other,” explained David Cichelli, survey editor and senior vice president of the Alexander Group. “Sales personnel who collaborate should be rewarded for team performance and the incentive weighting should be balanced between team and individual performance accordingly,” Cichelli added.
Other Survey Highlights:
- 8.4 percent is the estimated annual median increase in sales revenue for 2013.
- 6 percent was the median sales revenue increase in 2012 over 2011.
- 50.4 percent plan to increase headcount in 2013.
- 3.7 percent was the median increase in sales department costs in 2012.
- 31.4 percent provide long-term incentives to sales personnel.
More than 125 companies participated in the 11th annual survey. Participants provided data in December on questions regarding: sales projections, budgets, headcounts and sales compensation plan changes for 2013, as well as the outcomes from 2012. New questions on quota performance and long-term incentives also were included.
Source: The Alexander Group, Inc.
About the Survey Sponsors
The Alexander Group, Inc.®
The Alexander Group provides sales management consulting services to the world’s leading sales organizations, serving Global 2000 companies from across all industries. The firm has offices in Atlanta, Chicago, San Francisco, Scottsdale and Stamford. Visit www.alexandergroup.com.
WorldatWork (www.worldatwork.org) is a nonprofit human resources association for professionals and organizations focused on compensation, benefits, work-life effectiveness and total rewards – strategies to attract, motivate and retain an engaged and productive workforce. WorldatWork has offices in Scottsdale, Ariz., and Washington, D.C.
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