Alexander Group Publishes 2021 Sales Compensation Hot Topics Survey Findings
Many companies are experiencing stronger year-to-date performance than initial projections for 2021, according to the Alexander Group’s 2021 Sales Compensation Hot Topics Survey. In some cases, companies are paying higher incentives than anticipated causing some participants to make midyear quota adjustments.
COVID-19 forced many companies to incorporate additional selling methods and pay adjustments for sellers during the last year. One change that will be sticking around is virtual selling. Survey participants report virtual selling will continue as an acceptable customer contact method meeting both buyers’ and sellers’ needs. As for COVID-19 pay practices, the trend to make pay adjustments has declined in 2021 as compared to 2020. In 2020, 60.6% made some type of seller pay adjustment. Only 22.4% plan to adjust seller pay in 2021.
“We are waiting to see if the economic start for 2021 will continue in the second half of the year,” said David Cichelli, survey editor and revenue growth advisor of the Alexander Group. “If revenue continues to grow, expect robust incentive payments for salespeople during 2021.”
More than 120 companies participated in the survey. Participants provided data during June 2021. Survey topics included 2021 year-to-date practices, total compensation management practices, COVID-19 practices, sales credits, and contests and spiffs.