sales comp guy logo

Sales Comp Guy

Culture Considerations in Your Sales Organization

183:906269490 • November 30, 2024

Best Practices in Sales Compensation Part 2

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.


The Foundations of Culture

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.


  • Values: It's best to have 3-5 values that you and your team can get behind. These should be well thought out and fairly unchanging over time.
  • Mission: This is the top-level statement of your organizational goals and how your logistics, tactics, projects, and day-to-day activities will incrementally move you toward what you want your organization to be.
  • Vision: This can be a brief statement or a detailed document providing the aspirational, long-term goals your leadership has set for the organization.


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.


Your Compensation Philosophy: If You Don't Have One, Write One

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.


All's Fair in Sales Compensation

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. 

By 183:906269490 December 16, 2024
In my first Best Practices post, I talked about the importance of knowing what you can pay for your sales roles before worrying about what the market is saying. In my second post, I covered ways to utilize culture in a sales organization . The following Best Practice in sales compensation involves job content. Job content plays several roles in your compensation plan: 1. It gives your salesperson a guide to what success looks like in their role. 2. It gives you a guide to evaluating the performance of your salesperson. 3. It rationalizes differing levels of variable pay outcomes for varying performance levels. 4. It provides your organization with the structure needed to comply with any reporting, pay transparency, or other regulations. Hopefully, that’s enough to convince you of the importance of taking the time to define your new roles and revisit the definition of your existing roles. Now, here’s how job content actually does those things. Defining the job The first role of job content is to define the who, what, where, when, and how of the function. It can be tempting to borrow a job description from LinkedIn, Glassdoor, etc., with the assumption that the content will be similar enough to fit your needs. However, the way a specific role performs is unique to the organization it’s acting in, which is why it’s important to take the time to define the job from scratch. Here are the questions you should be answering in your job content: What does the person need to do on a daily basis? How does this individual pursue sales, and in what segment or with what type of customer? Where should they focus their time and attention when building a pipeline of deals? Who should they be interfacing with, both internally and externally? When do they engage with customers and/or prospects? What portion of the sales process do they own or support? How do they interface with and influence decision-makers? Now, even though I said to write your job description from scratch, that doesn’t mean this is the time or place to get too creative. Job seekers are going to be searching by job title or category, so it’s essential to stick to the common vernacular regarding industry jargon and expected job titles. Job Description: A Byproduct of Job Content Another positive outcome of creating job content for your roles is that you will have generated much of the information needed for a job description if or when you’re ready to hire. Information such as: Job duties and responsibilities that clarify the type of work and engagement with customers. Qualifications/Requirements that are both minimum and desired. Those include education, knowledge, skills, capabilities, and competencies. Performance measures of the role include items like achieving sales targets, new logo acquisition, development of pipeline, accuracy in forecasting, etc. With all of this information on file, it will not only be easier for you to prepare to hire for the roles you want, but it will also be easier to evaluate existing employees in those roles. Beyond all of that, you’ll be well prepared for competitive market research and establishing your variable pay program. I’ll be posting more best practices on the blog, but if you’re anxious to dive deeper into the subject of sales compensation, you can grab a copy of my book Starting Simple: Sales Compensation and consider working through the companion Workbook to build a sales compensation plan from scratch.
By 183:906269490 November 4, 2024
Best Practices in Sales Compensation Part 1
By 183:906269490 October 22, 2024
Aligning Compensation Strategies with Sales Leadership Objectives
By 183:906269490 September 9, 2024
Key Strategies to Align Your Sales Team for Success Next Year
By 183:906269490 August 26, 2024
Exploring the intricacies of sales compensation for specialists
By 183:906269490 June 4, 2024
Understanding Pay Equity
By 183:906269490 April 23, 2024
Incentivizing Success Beyond the Office
Job content for sales roles is more than job description
By 183:906269490 April 9, 2024
Creating detailed job content for each sales role can help your team succeed and prevent conflict or disputes.
By 183:906269490 March 26, 2024
How DOL requirements affect inside sales compensation
By 183:906269490 March 12, 2024
Potential pitfalls and opportunities of the new requirements
Show More
Share by: