It is never too early to start planning for next year's sales compensation plans.

That said, the problem with starting to design your sales compensation plans before your company strategy is known is that you may design great looking compensation plans but they may not help your company reach its goals. You need to make sure that the performance measures for your compensation plans will support your company in reaching its strategic goals. So designing sales compensation plans without keeping the strategic goals in focus could result in your sales reps delivering something else.

If the strategic goals are set, you can keep them in focus when designing your plans. You can also ensure that the quota is accurately deployed. So if your company needs $10m in revenue and you have 5 sales rep, each rep can carry a quota of $2m. But if you company goals are now $12m, you now have the option of looking at increasing the quota for the existing reps or adding a new head.

The alignment view and modeling that is included in Makana Motivator will help you design plans that support your company's strategic goals.

Teanna Spence, Compensation Director