Sales Compensation is Shifting to Include Team and Corporate Performance

A study by the Hay Group division of Korn Ferry finds that U.S. companies are putting less emphasis on individual performance and increasing the emphasis on organizational success when determining incentive compensation packages for sales roles.

The study analyzed individual contributor sales compensation data from 2010 through 2016. It found that in 2016, a full third of the companies included the company’s business unit or division performance when putting together sales force incentive compensation packages. That’s more than double the 16 percent of companies that did so in 2010.

In addition, the study found that in 2016, 26 percent of companies included a corporate-wide or team performance measure when determining compensation. That’s up from the 2010 figures of 15 percent and 12 percent respectively. Read More