Aligning your Sales Compensation Plan with the State of the Economy
The U.S. economy has been red hot for years. Stock markets have repeatedly hit new highs, unemployment is at record lows. When the economy is hot, people on roles tangential to sales often ask to be put on sales compensation plans. The desire to share on the upside of a strong economy is very tempting.
But prognosticators have been predicting an impending recession for at least 18 months and in January, a majority of CEOs believe there will be a slowdown in 2020. If a recession does happen this year, it could impact your company performance and individual sales performance, and therefore, sales compensation payouts. How should your sales comp plan be changed to reflect the economic environment?
Join ZS as we discuss how companies should review, assess, and potentially change their sales compensation plans to ensure they align with the current state of the economy. We will discuss key considerations for sales compensation design in a hot economy and highlight some steps companies can take if, as it did in 2008, the economy makes a sudden downturn. We will cover strategies to adjust your sales compensation program quickly rather than waiting until the end of the calendar year to implement changes.
- How (and who) to incent when the economy is red hot
- How (and who) to incent when the economy slips into recession
- How to adjust your plan if the economy moves into decline