Conceptual Foundations and Case Studies of Salesforce Compensation Plans

This book summarizes the state-of-research on salesforce compensation plan design and implementation. The salesforce is one of the major revenue drivers for many organizations. The salesforce compensation plan is a key concern of sales executives. Most companies adjust their pay plan every year. Marlon Braumann develops an eight-step process toward TAILORED compensation plans: tasks, assessments, insight, leverage, other incentives, relationship, evaluation, and deployment. His synopsis offers research-based answers to fundamental design questions, such as the number, choice, and linkage of performance indicators, the share of variable pay, use of accelerators and compensation caps, definition of bonus thresholds, and sales contests. He proposes a quantitative approach for evaluating compensation plan effectiveness. Two case studies illustrate the application of the TAILORED framework. The book builds a bridge between compensation research and compensation practice.