Many SaaS organizations have closed out their year and have recently gone through compensation planning for this fiscal year. Nearly every organization will evaluate their sales compensation programs as a part of this process. As organizations evaluate their design, they’ll likely focus on the performance metrics, accelerator tables, quotas, and pay levels. All of which are important design elements, and each have many available industry benchmarks. However, many organizations will not address the policies and practices that govern the overall compensation plan.
Policies and practices are often the toughest questions related to the plan design. They’re situational. They can be specific to your industry sector. They were likely put in place by legacy team members. They don’t often change every year. It can be difficult to know if your company even needs certain policies. But plan policies and practices can have a huge impact on the behavior and performance of your sales team.
Specifically, our research addressed the most common questions we received
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