This blog post is the third in a three-part series analyzing important sales compensation research.
Now that we’ve examined recent research on the success of team incentives and cash vs. non-cash incentives, let’s look into the efficacy of continuous vs. lump sum payments.
As you know, in sales compensation, performance drives bonus payout. It sounds simple, but there can be occasional challenges and disconnects that can hurt talent retention and sales force motivation. For example, it could be that, because of forecast uncertainty, the whole sales force wins or loses, reducing individual bonus differentiation. Maybe you have team selling situations that complicate how to differentiate bonus payouts from one team member to another, or your MBO ratings have little differentiation, which leads to little payout differentiation. Or perhaps your managers are all paid the same.