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AnalyticsIncentive Compensation ManagementSalary Planning and Merit IncreasesSales Performance Management

Keys to a successful sales compensation program

By April 22, 2013January 16th, 2023No Comments

Companies turn to implementation of a sales incentive program for a number of reasons. Either the sales team needs motivation or the company uses the program as an offensive tactic to push a designated item. However, there is one common theme across all use of incentive programs: In order for such an initiative to be successful, the organization needs to dedicate its time and attention to refining a strategy. Luckily, for companies out there with little experience in such matters, recent research on what goes into a well-run program provides firms with some guidance in their endeavors. When fitting a program with widely used incentive elements, businesses can look at a study produced by Best Practices, LLC for some direction. In it, the most common program aspects were annual salary increase (97 percent), individual performance rating (95 percent), individual performance review (92 percent), short-term incentives (82 percent), long-term incentives (62 percent) and non-monetary rewards (54 percent). Through the research of 47 industry-leading compensation programs, the study also developed a set of best practices for companies to abide by, including: offering multi-faceted, varied incentives and boosting talent recruitment and retention efforts through performance bonuses. The research also provided an 11-step process for companies to follow along when trying to build a successful compensation program. The first steps call for the business to align incentives with goals and establish baseline merit increases. The research also makes a case for deploying sales compensation software and formulating a plan of communication and education on the program. The latter stages of implementation consist of having the business track and measure the effectiveness of the program, and then using those results to inform its next plan of compensation action.

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Ballast Point Ventures

Ballast Point Ventures is a later-stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast, and Texas. The BPV partners have more than 70 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, financial services, and consumer goods. BPV has $200 million under management and seeks to make equity investments ranging from $3 million to $10 million.

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Harbert Management Corporation seeks to generate superior returns for their investors by identifying and investing in the most promising early growth stage companies in the Southeastern U.S. HMC seeks to capitalize on what it believes are compelling regional dynamics, such as a strong and fast-growing economy, significant research and development activities, and an established entrepreneurial community. The HMC team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. With offices in Birmingham, Alabama; Richmond, Virginia; and Gainesville, Florida, it’s well positioned to partner with entrepreneurs throughout the Southeast.

KBH Ventures

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