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The Keyword to Focus On When Designing Sales Manager Compensation Plans

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There is a keyword to keep front of mind when designing a compensation plan for sales managers. Listen to this episode to ensure you design the right plan for your sales managers.

Compensation is a very delicate part of your business. The sales department takes its direction based on the message communicated by their sales compensation plan. In an earlier episode, I shared some of the keys to designing a compensation plan for your sales reps. What about the sales manager’s comp plan?

Assuming that you’ve correctly structured the plan for the reps, there is an important word to keep in mind as you develop the plan for the sales managers… Alignment!

The sales managers are going to direct the activities of the reps based on the structure of their plan…how they make money. If the sales manager’s plan, in any way, conflicts with the way reps make money…you could paralyze your entire sales organization.

This doesn’t mean you have to pay them the same way, but you cannot have plans in conflict. Before you finalize your sales manager compensation plan, contrast it to the rep’s plan and make sure they are aligned. Remember, the compensation plan doubles as the job description.
See you next time on the Sales Management Minute.

Lee B. Salz is a leading sales management strategist specializing in helping companies build scalable, high-performance sales organizations through hiring the right salespeople, effectively onboarding them, and aligning their sales activities with business objectives through process, metrics and compensation. He is the Founder and CEO of Sales Architects, Business Expert Webinars and The Revenue Accelerator. Lee has authored several books including award-winning,  best-seller “Hire Right, Higher Profits.” He is a results-driven sales management consultant and a passionate, dynamic speaker . Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.