Skip to main content
Iconixx Insights BlogIncentive Compensation Management

Use incentive compensation plans to retain top employees

By July 11, 2013January 16th, 2023No Comments

A sales company is only as good as its sales reps, which is why it’s vital to hold on to top performers. Star employees drive sales, increase revenues and influence their colleagues to succeed. Not only can losing a quality worker be bad for company morale, it can be extremely costly, too. Turnover costs A study conducted by the Society of Human Resource Management found that direct turnover costs add up to 50-60 percent of an employee’s salary. When an employee takes off for a new job, companies have to spend time, energy and money on the recruitment process, all while feeling the impact of decreased sales. On average, the recruitment and hiring process takes eight weeks, during which time other employees have to pick up the slack. Even after a replacement has been found, companies will continue to feel the financial impact of a top salesperson’s departure, as it usually takes at least a few weeks to fully train a new hire. To prevent chronic turnover, companies need to focus on developing an incentive plan that will retain employees and encourage high performance from everyone at the office. Incentivize a workforce A manager should never let a sales force feel unappreciated, and considering the fact that it is usually a small number of people who bring in the most sales, it is extremely important to make sure high-performers know they are valued. A strong incentive compensation plan shows individuals their work is being noticed, and that VPs of sales recognize and are grateful for their hard work. Bonuses and sales prizes are an excellent way to reward team members, but when an employee constantly goes above and beyond the call of duty and pulls in big numbers for a company, it may be time to consider a merit increase. Considering how important employee retention is, many VPs of sales and HR professionals have begun using incentive compensation software, which can help a company decide how to best reward a sales team.

Leave a Reply

Close Menu
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.

Harbert Management Corporation

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

KBH Ventures was an early investor in Iconixx Software. KBH's investment philosophy plays a significant role in the firm's successful track record. KBH believes in running businesses to be cashflow positive and profitable every month. Startups and companies in a startup mode, such as one that has been purchased in distress, are expected to generate revenue within the first six months and reach profitability within the first 12 to 18 months. KBH also only invests in or acquires companies that are in the startup phase or have less than $20 million in revenues. KBH targets technology companies that offer business-to-business services.

S3 Ventures

S3 Ventures is an early expansion and growth stage venture firm with $200 million under management. It’s focused on information technology solutions that solve large business problems. S3 also invests in medical devices that improve the human condition. S3 invests in category-defining opportunities. It partners with the team and help focus methodically on what it takes to build a successful company. S3 today helps talented entrepreneurs take their technology and market knowledge and form valuable businesses in a repeatable fashion. Investment sizes start at several million or more for Series A, B, and C financing.