Among our international clientele, the ways in which reward and remuneration strategies are organised varies greatly depending on the region, product portfolio, seniority, revenue responsibility and other internal organisational factors.
Effective reward is not just about plentiful, open ended compensation – but also about finding the appropriate reward programs which are well aligned to the strategic direction and culture of the company. A factor for consideration is ensuring there is continuity, or if financially viable, improvement – among your competitors, and ensuring reward programs are designed to engage those already in the organisation, allowing you to attract, and retain talent at the same time.
Some of these strategies are significantly more attractive than others, and act as a vital mechanism for attracting external talent, as well as motivating those already employed by the organisation.
Mercer’s Sales Incentive Practices Survey Europe (https://www.uk.mercer.com/our-thinking/career/sales-incentive-practices-survey-report.html) questioned more than 80 organisations in 20 European markets. It found that to maximise sales performance and drive effective sales behaviours, sales plans must be strategically aligned and well-communicated. One of the essential factors is the definition of sales team roles.
The survey found that 46% of organisations offer salespeople a bonus-driven reward programme, 45% offer an incentive-led one, and 9% a scheme based on commission.
While the majority of respondents were found not to segment their pay approach based on role, those in the top-performing 15% consistently reported higher levels of variable pay.
At M-Tec Executive Partnership, we’ve found that over performance often correlates with sales incentives, variables and LTI’s that are driven by the organisations profitability (both divisionally or product line focused, and as an entire organisation or business segment). Moreover, these are linked to personal performance concurrently – this type of mechanism bolsters collaborative team work as well as driving the performance of individual contributors.
There are also intangible measures to correctly structuring your Reward and Remuneration strategies, such as employment security, culture, working environment, and of course – career development.
Please do not hesitate to contact M-Tec Executive Partnership should you require advise on how to structure or put in place a total reward program that creates real value for the organisation.