Case Studies

NextDoor: Sales Incentive Compensation Case Study #2

Written by

Carmen Olmetti

Situation

Nextdoor’s exponential growth meant that sales roles and compensation plans need to evolve. There were two primary goals: create a new career architecture with defined selling roles across AES, AMS, and CSMS and secondly, design compensation plans with updates OTES, pay mix, and accelerator structures.

Approach

• RevEng took a comprehensive approach to the Assessment. We surveyed the field, interviewed senior leaders, benchmarked against Radford career architecture, and performed ten core pay for performance analytics.

• We spent three hours educating senior leaders across sales and finance about the importance of quota bands and how to build an accelerator program using design concepts like leverage and excellence

• The Design sessions were seamless since the Assessment was comprehensive and we spent considerable time on educating senior stakeholders.

Results

New career architecture for core selling roles

that were benchmarked competitively as well as a regional pay mix strategy.

New accelerator program

that was cost neutral but has considerably more upside for high performers. We were able to model out and prove cost neutral because of the differentiated quota bands and accelerator rates.

The company no longer had trouble attracting and retaining top talent and

2 years later the quota bands and accelerator structures were still in place and quota performance had improved 10 percentage points.

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