The Alexander Group Survey Projects Cautious Sales Growth for 2012
Scottsdale, Ariz., January 24, 2012 – Sales departments are reporting a cautious year-over-year sales growth projection rate of 7.5 percent for 2012, according to the 2012 Sales Compensation Trends Survey, co-sponsored by the Alexander Group and WorldatWork. This number reflects a modest increase of 1.5 percent sales growth over the actual 6 percent sales growth rate reported for 2011.
The previous year’s survey showed an actual growth of 7 percent in 2010 and projected an 8 percent growth for 2011. “In retrospect, 2011 was a pause in revenue growth outcomes,” according to David Cichelli, senior vice president of the Alexander Group and survey editor. The previous year’s survey recorded an expected 8 percent growth for 2011. However, the actual results, according to the 2012 survey, produced only a 6 percent sales growth for 2011.
At the end of 2010, most sales executives had very positive expectations for 2011. But 2011 showed to be a more modest year for growth. Growth prospects remain positive. Good news about the future comes in the form of a projected real budget expense increase of 5 percent for sales departments in 2012. “The uptick in spending is positive news for sales departments,” Cichelli said.
Other survey findings indicated that 75 percent of the participants plan base pay increases in 2012. For those granting base pay increases, the median increase amount will be 3 percent.
More than 115 sales departments provided data in December 2011 on what occurred in 2011 and what they think will happen in 2012. This survey represents practices affecting approximately 120,000 sales personnel. Survey respondents answered questions regarding: sales department outcomes and prospects; sales force headcount changes; turnover; sales department goals and costs; 2011 sales compensation program outcomes; 2012 sales compensation program practices; and key sales job—sales compensation practices.
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. Founded in 1985, the Alexander Group combines deep experience, a proven methodology and data-driven insights to help sales leaders anticipate change, align their sales force with company goals and make better informed decisions with one goal in mind – to grow sales. The firm has offices in Atlanta, Chicago, San Francisco, Scottsdale and Stamford. Visit www.alexandergroup.com.
WorldatWork WorldatWork (www.worldatwork.org) is a not-for-profit organization providing education, conference and research focused on global human resources issues including compensation, benefits, work-life and integrated total rewards to attract, motivate and retain a talented workforce. Founded in 1955, WorldatWork has nearly 30,000 members in more than 100 countries. Its affiliate organization, WorldatWork Society of Certified Professionals®, is the certifying body for the prestigious Certified Sales Compensation Professional™ (CSCP™) and other professional designations. WorldatWork has offices in Scottsdale, Arizona, and Washington, D.C.
The Alexander Group, Inc.