sales comp guy logo

Sales Comp Guy

The Foundation of Compensation Design: Understanding Job Content

183:906269490 • April 9, 2024

It's about more than writing a job description...

Understanding job content isn't just a preliminary step in hiring a new employee or creating a new role—it's the foundation of the entire compensation design process. It informs every other decision, from establishing pay scales to aligning incentives with business goals, and it does this by outlining the core responsibilities, daily tasks, and required skills for a position.

 

Core Questions to Define Job Content

 

Probably the thing you think of first when you think about job content is the parts of the job description that outline what you're looking for and what the job entails. These are called compensable factors (education, work experience, etc.) and responsibilities.

 

This first step in defining job content for a sales role includes considering the following:

 

  • Daily Responsibilities: What tasks will fill the employee's day?
  • Engagement Strategies: How will they attract and interact with clients?
  • Target Market/Segment: Who are the customers, and what needs do they have?
  • Interactions: Who does this role require them to meet with, both inside and outside the organization?
  • Time Allocation: When is the optimal percentage of time for engaging with prospects or customers?
  • Required Skills: What specific skills and knowledge do they need to succeed?

 

Imagine a sales role focused on technology solutions for small businesses. The job content might include daily client consultations, crafting tailored IT proposals and solutions, and regular follow-up meetings to ensure customer satisfaction and support.


Example job content for a sales role

Aligning Job Content with Compensation Structures

 

Determining Job Level and Market Data Collection

 

Job content not only helps categorize roles into levels (entry, professional, advanced) but also aids in collecting accurate market data. Whether you're seeking to be competitive in your labor market or looking for ways to compensate for an inability to match the going pay rates for your roles, creating standardized role-based job content lays the groundwork for ensuring your compensation package is competitive and fair.

 

Setting Objectives and Expectations

 

Job content directly addresses:

 

  • Objectives: What goals does the role aim to achieve?
  • Budgeting: How does the role fit into the organization's overall budget and support the revenue expectations?
  • Sales Cycle Considerations: What is the length and complexity of the sales process?

 

Performance and Payout

 

The specifics of job content shape:

 

  • Performance Metrics: What are the Key performance indicators (KPIs) tailored to the role?
  • Payout Timing: When and how often bonuses or commissions are paid for specific achievements?
  • Risk Assessment: What is the proportion of pay tied to performance?


Pay Transparency in Sales Compensation

 

Compliance with Pay Regulations

 

Detailed job content documentation prepares you for the changing legal landscape in terms of pay transparency but also sets you up for success in creating an equitable and fair environment. It's a crucial step in staying compliant with various regulations.

Implementing a Job Content-First Approach in Compensation Design

 

Steps for Organizations

 

As with all aspects of compensation design, creating your job content is not a set-it-and-forget-it process. Regular reviews are required to keep up with your organization's changing strategy and go-to-market model. Preparing job content for compensation design requires the following:

 

  1. Conduct Thorough Job Analysis: Clearly define what each sales role entails.
  2. Regularly Updating Job Descriptions: Keep pace with changes in market demands and business objectives.
  3. Aligning Compensation with Job Content: Ensure pay structures reflect the value and demands of each role.

 

Continuous Evaluation and Adaptation of Job Content

 

Adapting job content and compensation strategies is an ongoing process. Markets evolve, and so should your approach to compensation design.

 

Placing job content at the heart of compensation design ensures your sales team is motivated, competitive, and aligned with your business goals. It's not just about paying fair wages; it's about building a transparent, equitable system that recognizes and rewards true value and performance. Embrace a job content-first approach for a robust compensation strategy that stands the test of time.


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 30, 2024
Best Practices in Sales Compensation Part 2
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
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: