Over the past few months, organizations have closed out their year and have gone through compensation planning for the new fiscal year. During this process, organizations evaluate their sales compensation programs. They typically focus on performance metrics, sales accelerators, quotas, and pay levels as part of the design evaluation. The issue is that most organizations don’t address the policies and practices that govern the overall compensation plan.
Policies and practices are often the toughest questions related to the plan design. This is because they’re situational and don’t usually change every year, but can be specific to your industry sector. And more likely than not, they were put in place by legacy team members. Because of this, it can be difficult to know if your organization even needs certain policies. Your plan’s policies and practices are very important though because they can have a huge impact on the behavior and overall performance of your sales team.
Spiff and Brevet recently conducted a survey to better understand the policies and practices of SaaS compensation plans for sales teams. More specifically, the research addressed the most common questions around sales crediting, mega deals, accelerators, new-hire compensation, and spiffs. The goal of the research is to help your organization make better-informed decisions around these policies and practices.
The infographic below highlights some of the most important statistics from the survey including key findings like:
- 68% of companies have no policies governing mega deals
- 67% of companies utilize spiffs in their compensation plans
- 49% of respondents don’t have a plan in place to compensate deals that are renewed early
It’s no surprise that the pandemic has had a direct impact on SaaS sales practices. For many organizations, it has shed a spotlight on known but long-ignored gaps in their sales compensation strategies. Gone are the days where SaaS companies only tweak their compensation plans and policies during the annual review. Because of the shift to virtual selling, questions continue to arise around plan design, sales crediting, and quota setting.
Spiff can help you design and formalize your SaaS compensation plans and policies today.
Spiff is a leading sales commission software that automates commission calculations and motivates teams to drive top-line growth. With a combination of an intuitive UI, real-time visibility, and seamless integrations into current systems, Spiff is the first choice among high-growth businesses. The platform enables finance and sales operations teams to self-manage complex incentive compensation plans and provides transparency for sales teams. See Spiff in action! Schedule your demo today.