I think, by now, that most organizations understand the importance of a positive culture and may even promote their culture in their hiring and recruitment materials. But it's important to keep in mind that culture requires maintenance. Just because you've got it good now doesn't mean it'll stay that way on its own. Conversely, just because your culture isn't the way you want it doesn't mean you can't make it better. My sales compensation best practice tip number 2 is: get your house in order and keep it that way.
Vision, values, and mission statements aren't just pretty words on paper. Done right, they're the guiding principles and documents of your organization. They're a structure you've agreed on and can check all your actions against to maintain consistency in all your decision-making.
If you don't have these in place or are in need of building them out in more detail, grab a copy of my workbook to guide you through these actions and many other details involved with establishing and updating your sales compensation plan.
*Extra points if your organization has a purpose statement that helps reiterate the aspects of purposeful work and reiterates why what your organization does matters beyond just making a product and a profit.
The foundations of culture are great for an organization, but what do they have to do with sales compensation?
In fact, they have everything to do with it. They'll be the guiding principles for the development of your compensation philosophy, a document that details how you intend to approach and structure pay and its relationship with performance for your team.
This document is the thing that translates your organization's values and mission into the details of how you compensate so that your sales practices and guidelines are in strong alignment with the organization's objectives and underlying ethos.
Lastly, this wouldn't be a post about culture if it didn't include talk of fairness. Fairness is a tricky subject when talking about pay for performance. After all, you want to create an environment where people are motivated to achieve their target and beyond! And it's rare that you won't have at least one person who blows the target out of the water and one who struggles to even make quota. So, what is fair in that situation?
That's why I talk so much about the E in DEI. Fairness in sales hinges on equitable opportunity in target setting, territory allocation, and market valuation. Getting these things right creates a fair environment for your sales team. Ultimately, these actions are essential to establishing trust and maintaining a winning performance culture.
Read more about fairness in sales compensation here.
In case you missed it, best practice #1 is up on the blog. Stay tuned for more best practices throughout the remainder of this year. If you haven't already, be sure to sign up for the newsletter to keep up to date on all things sales comp.