It's no secret that salespeople are motivated by their potential earnings. There are also associations with sales comp and revenue growth, with companies that overcompensate their sales teams growing more quickly. Given the importance of sales compensation, then, it should be table stakes for companies to give their sales reps basic information about how their compensation plans work. However, according to new research conducted by Palette, 25% of companies surveyed report that their reps don't understand their comp plans.
This is a huge missed opportunity. Without insights into their potential earnings, salespeople won't be motivated to do their best work and sell more. While it's important to design a comp plan which accounts for the nuance and complexity of a business, it's also important to communicate this plan clearly.
The research found that only one third of companies provide reps with real time reporting and individualized dashboards where they can check their current earnings and earning potential at any time. Providing reps with the visibility to see how much a potential deal will impact their commission payouts is key to motivating them. Many companies fail to provide this because of the manual work involved creating spreadsheets for each sales rep. With automated commissions, though, these dashboards are created automatically without any additional work for plan administrators. Get in touch with us to learn how Palette can provide your team with up to date visibility on quota achievement.