Alexander Group Survey Reveals Global Sales Compensation Practices
More than 60% of companies report a general trend to more global sales compensation consistency, according to the 2022 Global/Multi-Country Sales Compensation Practices Survey published by Alexander Group in July. Responses reflect the practices among the 12 largest national economies. Participants included 123 companies reflecting the practices covering over 145,000 sellers.
“Generally, most global companies manage their sales compensation on a global basis with similar practices worldwide. Unique local go-to-customer strategies and job designs warrant locally configured solutions”
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In other findings, companies reported pay mix varies little among countries (5% or less). The country with the deepest pay mix was Canada (61/39), while Japan had the least pay mix (66/34). Of the participating companies, only 44% reward teams for sales compensation. However, the team component only represents 17% or less of target incentive.
“Generally, most global companies manage their sales compensation on a global basis with similar practices worldwide. Unique local go-to-customer strategies and job designs warrant locally configured solutions,” said David Cichelli, survey editor and revenue growth advisor for Alexander Group.
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Key Findings
- 77% have a corporate party responsible leading global sales compensation practices.
- Upside earning potential varies from less than 1.5x (multiple of target incentive) to over 3x. In-country upside potential practices vary substantially for all countries.
- Monthly payouts are the most common payout timing for the largest incentive component. Quarterly is the second most common payout timing.
