Don’t Waste Sales Bonuses on Easy Targets
Most companies pay sales people a combination of a salary, a commission, and a bonus for hitting a quota, putting a portion of their pay at risk. The belief is that at-risk pay motivates sales people to work hard and direct effort towards sales activities that encourage achievement of sales goals.
In reality, however, many of the commissions and bonuses companies pay sales people aren’t truly at risk — and as a result, the company may be spending money in ways that produce little in the way of extra effort or motivation.
Pay mix
