The good news and the bad news: Incentive Compensation works! But - are your sales people really motivated? Are they motivated to do the right things the right way to deliver the right results? The sales compensation plan design process for 2010 will begin in earnest for many companies this month. Based on an assessment of results under the plan and the stated business objectives for 2010, the plans may need little change (i.e., the time-honored “plan tweaking” process). However, given the dramatic changes in the economic environment in the last 18 months, and shifts in focus for many industries, perhaps it’s time to revisit what’s in your Incentive Plan Design Toolbox.

As designers embark on the plan design or redesign process, they have at their disposal both “the basic tools” and “power tools” to motivate their sales people through the incentive plan. In this White Paper, we will describe the motivational tools that are available to ensure that your plan encourages the right behaviors, rewards the right results and supports the objectives of the plan. Design techniques, assessment methodologies and other incentive devices are defined and described in both our White Papers¹ and in our books published by WorldatWork².