Design Reward Systems That Drive Performance and Align Pay with Revenue Outcomes
A well-designed sales incentive compensation plan goes beyond paying commissions. It's a comprehensive strategy that influences behavior, drives performance, and shapes your organization's sales culture.
Sales incentive compensation is a strategic approach to rewarding sales professionals based on their performance and contribution to revenue goals. Unlike fixed-salary roles, sales incentive compensation includes a variable component directly tied to individual and team achievements against assigned quotas. This creates a win-win scenario in which salespeople are financially rewarded for their success, which, in turn, contributes to the company's overall success.
Yet, despite well-designed plans on paper, their execution often falls short, with strategies that fail to translate into practice. Quotas, when set without thorough analysis, can inadvertently foster fairness issues among teams. Accelerators intended to reward top performers can create windfalls, creating disparities rather than motivation. Moreover, pay structures that overlook quota bands risk unfairly penalizing reps, further disrupting the intended harmony of compensation systems.
We design compensation programs that motivate the right behaviors, reward performance fairly, and can be administered without creating operational chaos.
What you get
A Comprehensive diagnostic of your current compensation programs that identifies gaps, risks, and opportunities across all elements of your sales comp framework.
When you need this
Compensation programs haven't been refreshed in 2+ years
Retention issues or fairness complaints are emerging
Planning significant GTM changes requiring comp redesign
New leadership wants an objective assessment before changes
Our Approach
Current plan analysis across all design elements using the Sales Compensation Growth Model framework
Pay-for-performance analytics: quota attainment distribution, payout curves, pay mix effectiveness
Field surveys and stakeholder interviews (sales leadership, reps, finance, HR)
Benchmark analysis against Radford and industry-specific data
Root cause identification that traces symptoms to underlying design issues
Deliverables
Comprehensive assessment report with findings across Corporate, Operational, and Comp Plan elements
Pay-for-performance analytics dashboard
Benchmark comparison showing market position by role
Prioritized recommendation roadmap with quick wins and strategic initiatives
Executive presentation with business case for changes
Timeline: 4-8 weeks, depending on organization complexity
What You Get
Market-competitive pay structures and career progression frameworks ensuring you attract and retain top talent while maintaining internal equity.
When You Need This
Losing candidates or employees due to compensation issues
Unclear career progression paths that create retention issues
Geographic expansion that requires regional pay strategies
Role proliferation without a clear leveling structure
Our Approach
Job matching and market data selection using Radford and industry surveys
Career architecture design with clear levels, competencies, and progression criteria
Pay range development balancing external competitiveness with internal equity
Regional pay strategy for multi-geography organizations
Transition planning for employees moving into the new structure
Deliverables
Career architecture framework with job levels and role definitions
Market benchmarking report by role and level showing 50th, 75th, and 90th percentiles
Salary range structure with guidelines for hiring, promotions, and adjustments
Geographic differential strategy (if applicable)
Individual pay analysis and transition recommendations
Communication materials explaining the new structure to employees
Timeline: 3-5 weeks for design; implementation phased over 1-2 quarters
What You Get
Complete sales compensation plan design from strategy through detailed mechanics, ensuring plans motivate the right behaviors and can be administered effectively.
When You Need This
Launching new sales roles or restructuring existing ones
Current plans are not driving desired behaviors
Sales strategy changed, but comp plans haven't
Quota attainment shows systemic issues (too high/low, unfair distribution)
Our Approach Using the Sales Compensation Growth Model
The RevEng Sales Compensation Growth Model emphasizes the interconnectedness of compensation elements across three levels. You can have perfect corporate strategy alignment and excellent guiding principles, but if the operational implementation doesn't work, the program will fail. Most consultants start and stop with comp plan mechanics. We connect every element to upstream strategic considerations and operational realities.
Corporate Level Alignment
Customer segmentation and GTM strategy integration
Talent strategy and role design connection
Budget and financial modeling to ensure cost management while driving desired behaviors
Regulatory and compliance review
Operational Design
Sales process alignment with natural measurement and incentive points
Organizational structure determining individual versus collective measurement
Comp administration and governance framework
Territory design and quota setting methodology creating fair, achievable goals
System and tool requirements for calculation and reporting
Comp Plan Mechanics (10 Essential Elements)
Top Performer Framework
Quota Setting Philosophy
Deliverables
Timeline: 4-8 weeks, depending on the number of roles and plan complexity
What You Get
Governance structures, policies, and operating rhythms that ensure compensation programs run smoothly and adapt appropriately over time.
When You Need This
Comp plan disputes consume leadership time
Inconsistent exception handling creates fairness issues
No straightforward process for quota changes or adjustments
Plan effectiveness is not being measured
Need structure before rolling out new plans
Our Approach
Quota-setting is a team sport—and without clear roles, it can undermine your talent and financial goals. The best organizations build governance committees made up of senior leaders from Sales, Finance, and Operations. These committees own the process design, timeline, methodology, and final signoff.
Good governance means clear decision rights (who decides, who informs, who executes), transparent timelines and expectations, a repeatable process (not fire drills), and built-in checks from cross-functional stakeholders.
Governance Structure Design
Global Sales Incentive Compensation Governance Board: Approves all compensation plans, exceptions, quotas, and disputes.
Quota-Setting Governance Committee: Establishes quota-setting process and timeline, provides final recommendation on individual-level quotas.
Global Sales Incentive Compensation Design Committee: Provides final design for sales comp plans and analyzes plan effectiveness.
Sales Incentive Compensation Administration: Manages day-to-day admin, owns plan dissemination, and commissions payouts.
Policy Development
Exception management policies and approval workflows (counter-offers, off-cycle adjustments, windfall protection)
Dispute resolution process and escalation protocols
Crediting policies for complex scenarios
Clawback and guarantee policies for new hires and role changes
Territory and account assignment change procedures
SPIFF governance framework for short-term incentives
Operating Cadence
Quarterly business review framework tracking plan effectiveness
Annual planning calendar and process timeline
Monthly/quarterly payout review and approval process
Plan effectiveness metrics and reporting requirements
Deliverables
Timeline: 4-6 weeks for framework design; ongoing advisory support for 1st year
What You Get
A complete change management and enablement program that ensures comp plans are understood, trusted, and drive adoption.
When You Need This
Rolling out new or significantly changed compensation plans
Historical rollouts resulted in confusion and resistance
Need to build trust in the fairness of new programs
Want high adoption and behavior change, not just compliance
First time implementing significant comp changes
Our Approach Using The Rollout Framework
Successful compensation plan implementation requires all stakeholders—from executives to individual contributors—to understand the mechanics and believe in the strategic alignment.
Planning Phase: Establish communication strategies, training materials, and administrative setup for foundation building.
Activation Phase: Execute communication plans, deliver manager and employee training, and implement system activation for launch.
Optimization Phase: Collect feedback, measure adoption and performance, and continually refine processes and systems for improvement.
This streamlined overview highlights our strategic approach to planning, launching, and optimizing initiatives efficiently.
Deliverables
Communication Materials Checklist:
Executive Level: CEO/CRO announcement memo, strategic rationale deck, town hall presentation, executive talking points
Leadership Cascade: Regional leader scripts, department-specific decks, Q&A response guide, email templates
Individual Communications: Plan summary documents, role-specific examples, FAQ documents, acknowledgment forms
Enablement Materials:
Training Content: Manager certification program, self-paced learning modules, video tutorials library, role-play scenarios
Tools & Calculators: Compensation calculators, goal-setting worksheets, what-if scenario tools, mobile app resources
Reference Materials: Plan design documents, terms & conditions, policy guidelines, quick reference guides
Support Infrastructure:
Help desk procedures and support team training
Knowledge base/wiki with searchable content
Office hours schedule and FAQ compilation
Feedback collection and continuous improvement process
Timeline: 2 weeks planning, 4-6 weeks rollout execution, 90 days post-launch support and optimization
Most organizations start with Compensation Strategy & Assessment to understand the current state, then move into Sales Incentive Compensation Design for the new programs. Benchmarking & Career Architecture often run in parallel to ensure market competitiveness. Governance is established during or immediately after design. Rollout & Communication happens once the design is complete.
We can also deliver services individually based on your needs. Already have a plan designed, but need help with rollout? Start there. Need governance without redesigning everything? We can do that too.
Common Engagement Paths
Full Transformation: Assessment → Design → Governance → Rollout (12-20 weeks)
Focused Redesign: Assessment → Design → Rollout (8-12 weeks)
Implementation Support: Governance → Rollout (6-8 weeks for existing designs)
Quick Assessment: Strategy & Assessment only (2-4 weeks for diagnostic and roadmap)
We partner with you through implementation using our proven 4D Framework—ensuring compensation programs don't just exist on paper, but deliver measurable outcomes.
Diagnose: Comprehensive Current State Assessment
Deep diagnostic work using a multi-lens approach
Historical trend analysis and AI-driven pattern recognition
Stakeholder engagement across sales, finance, HR, and operations
Root cause identification, not just surface symptoms
Design: Co-Create Practical Solutions
Strategic planning workshops defining success criteria
Solution development across all three levels of the Compensation Growth Model
Financial modeling ensuring cost-neutrality or controlled impact
Co-creation ensures alignment, buy-in, and a realistic foundation for execution
Deploy: Structured Implementation
Implementation governance with clear decision rights and escalation paths
Change management activation with communications and enablement
Field enablement through training, tools, and ongoing support
Real-time monitoring and rapid issue resolution
Decode: Continuous Optimization
Performance monitoring with KPI tracking and dashboards
Plan effectiveness assessment and adjustment recommendations
Quarterly business reviews with the governance committee
ROI measurement and value validation
Chief Revenue Officers who need compensation programs that align with the GTM strategy and drive desired behaviors
VP Sales who face retention issues, fairness complaints, or misaligned incentives
Compensation & HR Leaders who design or need to refresh sales comp programs
CFOs who are focused on cost control and pay-for-performance ROI
Private Equity Operating Partners who want to standardize compensation within or across portfolio companies
Improved Performance Alignment
Plans that motivate the right behaviors and reward outcomes that matter
Reduced Turnover
Market-competitive pay structures and fair quota distribution improve retention of top performers
Administrative Efficiency
Clear policies, governance structures, and systems reduce disputes and administrative burden
Transparent Programs
Plans that reps understand and trust, with visibility into pacing and earnings
Cost Predictability
Financial modeling ensures compensation costs align with revenue performance
Faster Implementation
Structured rollout frameworks reduce time-to-adoption and minimize disruption
Career Architecture & Accelerator Program
Exponential growth required evolving sales roles and compensation plans. Created new career architecture for core selling roles benchmarked competitively, and regional pay mix strategy. Designed a new accelerator program that was cost-neutral but had considerably more upside for high performers through differentiated quota bands and accelerator rates. Quota performance im
Global Health Company: End-to-End Sales Transformation
30% new revenue goal with competing hypotheses about roles and compensation. Comprehensive assessment including field surveys, high performer personas, and ten core pay-for-performance analytics. Delivered new career architecture, accelerator program, updated segmentation model, new competency model, and improved sales results through role specialization.
Haribo: Direct & Partner Compensation Restructure
Restructured direct and partner compensation programs to make plans market competitive and improve partner revenue. Comprehensive review isolated three major pain points and delivered updated programs that improved partner engagement and revenue contribution.
Sales Compensation Growth Model - Our comprehensive three-level framework for integrated compensation design
Growth Excellence Model (GEM) - Our comprehensive framework, including the People & Rewards pillar
Revenue Growth Strategy & Execution - The strategy that compensation should support
[BLOG LINK: "Sales Incentive Compensation: A Primer"]
[BLOG LINK: Quota Setting methodology]
[BLOG LINK: Market Competitiveness]
Ready to Fix Your Compensation?
Sales compensation that's fair, motivating, and administratively feasible doesn't happen by accident. It requires deep expertise in plan design, quota methodology, governance, and change management.
Which service do you need? Not sure? Start with a Compensation Strategy & Assessment to clarify priorities.