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Mike Lieberman, CEO and Chief Revenue ScientistFri, Sep 8, 2017 5 min read

3 Signs You Need Sales Compensation Consulting Services

{}A fair and rewarding sales compensation plan is often the key to keeping your top-performing salespeople from seeking work elsewhere. If they feel they are being adequately compensated for the rigorous work they put in day after day, they will undoubtedly remain loyal and drive the overall success of your business.

If you’re unaware of what purpose a sales compensation plan serves or wonder why your employees ultimately leave, it may be time to re-evaluate your sales structure and perhaps seek the help of sales compensation consulting services.

1. You’re Not Hitting Your Quota or Measuring Success Correctly

If a large majority of your sales representatives are below quota, then something may be wrong. Quotas that are set too high can be highly demotivating for your sales staff and affect the overall performance of your company.

Quotas should be aggressive, yet realistic. Try asking yourself questions like these:

  • Is our quota manageable?
  • How did our sales reps perform last year?
  • What’s the workload like for each salesperson?

If you can confidently answer these questions, then you’ll be in good shape for motivating your team and hitting all your forecasted sales goals.

Measuring these quotas and the expectations placed on your sales staff is also something to consider when setting overall goals for your employees as well. If you decide to add on additional bonus incentives to your current compensation plans, be aware that this may divert focus away from your company’s primary sales targets.

You don’t want to risk confusing your salesforce nor pulling their attention in different directions. If their priorities are unclear or open-ended there’s a chance they won’t know where you want them to focus their time. Additionally, they may prioritize tasks in their own way, based on what will easily make them the most money, which may not align with your overall strategy or sales goals.

2. You’re Not Being Clear

Employees often wear many hats within a business, but if there is an overlap in job roles, confusion may arise in terms of who is responsible for what and who’s given credit for work done.

By having clearly defined positions, you can place your most skilled workers in roles where they can perform their absolute best. This will also allow you to delineate between accounts, so you know exactly who’s working on what and who should get credit for specific sales.

Additionally, specialized job roles make creating transparent sales compensation plans easier, thus clearly communicating to your sales staff what they can acquire and how to achieve it.

3. You’re Not Recognizing Success and Your Top Performers Are Leaving

Your sales staff faces a combination of acceptance and rejection on a daily basis, so it’s important to recognize performance milestones. There is often too much rejection in the world of sales, so providing recognition can do wonders for boosting the morale of your employees.

Salespeople are the face of your business, so it’s important they are motivated and feel connected to your brand. To this end, a simple congratulations on a job well done can go a long way in terms of keeping your staff happy and gung ho about sales.

With that said however, employee turnover is an unfortunate reality in any business, so it’s important that you are able to retain your best salespeople. In that respect, a rewarding and fair sales compensation plan is key to keeping your best performers engaged and invested in your business. A happy workforce is a more effective workforce, so it’s important to value those who work on the frontlines.

Seek Compensation Consulting Services

If you spot these three signs within your business, it may be time to seek help, but have no fear! Consulting services exist to advise you of the best way to structure your compensation plan and, together, you can create a plan that is sustainable and rewards the hard work put in by your sales staff. That way, you can boost the performance of your salespeople and increase the potential of your bottom line.


Mike Lieberman, CEO and Chief Revenue Scientist

Mike is the CEO and Chief Revenue Scientist at Square 2. He is passionate about helping people turn their ordinary businesses into businesses people talk about. For more than 25 years, Mike has been working hand-in-hand with CEOs and marketing and sales executives to help them create strategic revenue growth plans, compelling marketing strategies and remarkable sales processes that shorten the sales cycle and increase close rates.