Incentive Compensation: What It Is & How to Structure a Plan

Incentivate Solutions18 Apr, 2022Business

Incentive compensation is a type of compensation in which a salesperson?s income is at least partially and directly linked to their individual sales efforts, the revenue they make, the performance of their team, or the overall success of their company. Incentive compensation plans are a popular way for sales managers to motivate their employees and encourage them to exceed expectations. In any setting, meaningful incentives influence behavior, and sales are no exception. Without incentive compensation, salespeople may be less likely to consistently surpass or even reach quota.