Realigning Incentives & Pay-Mix to Accelerate Growth
Published on
April 30, 2025
Sector: Diversified Manufacturer
Revenue: More than $10B
Size: 4 Business Units
Scope: North America
Impact:
- Reduced incentive plan population and related overhead by 70%
- Aligned compensation mechanics and levels with market best practices to improve retention and enable recruitment of top talent
Business Issue:
- There was a perception that the company’s sales force was not driving sufficient results for the current compensation cost
- Each Sales Group is unique in terms of its value proposition, go-to-market strategy, business challenges and sales force
- Sales incentives have historically had less aggressive pay mix with heavier weighting on base salary
- Turnover is low, but generally top performers are the ones who leave
Approach:
- Sales process mapping
- Sales role definition and competencies
- Pay for performance analyses
- Sales incentive design
- Cost modeling & monte-carlo simulation
- Change management & communications
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