Align Incentive Plans with Growth-Oriented Behaviors
Align Incentive Plans for Management & Sales with Growth-Oriented BehaviorsThe sales and installation division of a Fortune 500 company needed to restructure its management and sales incentive plans in order to strengthen the link between pay and performance. The division operated out of 45 field offices across the US, each with separate sales, service, and installation functions. Incentive plans at these 45 field locations were hard to understand and calculate, making it difficult for plan participants to see how their individual activities were tied to potential rewards. What’s more, the plans largely ignored the importance of teamwork.
To address these multiple compensation issues, management needed incentive plans that would provide strong linkage between performance and rewards as well as drive desired business results.
Conduct Incentive Compensation Study to Provide Basis for Comp PlanThe Chatfield Group designed and implemented a comprehensive compensation study to provide the foundation for revising the company’s management and sales incentive compensation programs.
Over a six-month period, we brought together representatives from across the country to pinpoint problems in existing plans and to take part in revamping the company’s approach to compensation. We led cross-functional discussions to identify key individual and shared performance metrics as well metrics that were particularly relevant from a functional, regional, and corporate perspective. And we provided continual analysis and modeling of plan options to keep a sharp focus on the study’s primary objectives – simplicity, teamwork, and financial results.
Once the new management and sales incentive compensation programs were approved by senior management, The Chatfield Group created communications materials for regional management to use in rolling out the new plans to covered employees. We also developed a workbook to help employees calculate their individual rewards under multiple performance scenarios.