Final answer:
When adjusting a sales compensation approach, consider revising commission rates, bonus structures, performance metrics, and payout schedules, all while ensuring alignment with business objectives and market standards.
Step-by-step explanation:
When attempting to adjust a sales compensation approach, it is essential to consider several factors that can impact the effectiveness and fairness of the sales compensation plan. The adjustments might include alterations to commission rates, creating or modifying bonus structures, reassessing performance metrics and goals, as well as the timing and frequency of compensation payouts. It's also important to evaluate the market competitiveness of the sales compensation and ensure that it aligns with the overall business strategy and objectives.
The process often involves analysis of both internal data, such as past sales performance and employee feedback, and external data, such as industry standards and economic conditions. Adjusting sales compensation might be done to motivate sales staff, retain top performers, encourage the sale of new or high-margin products, or realign the sales strategies with the current business environment.