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From Complexity to Clarity:
Transforming Sales Compensation to Drive Performance

Challenge

The client’s B2B sales team was underperforming and losing market share. In addition to weak sales results, the organization faced high customer cancellation rates, rising employee turnover, and prolonged time-to-hire.

New sales leadership was tasked with reversing these trends and recognized the need for a fundamental transformation of their sales compensation structures.

Approach

Greg partnered with the new sales leadership team to lead a comprehensive transformation of the sales compensation program. His collaborative and consultative approach included:
  • Sales Compensation Audit
    • Analyzed prior years’ sales representative performance and earnings data
    • Conducted a deep dive into the existing plan design, performance metrics, governance, and payment administration
    • Benchmarked roles against market data
    • Designed and facilitated employee surveys and focus groups
    • Engaged in extensive discussions with sales leadership to clarify goals, identify barriers, and build a consensus for change
  • Design & Development
    • Designed a new sales compensation framework including salary ranges, pay mix, and On-Target Earnings (OTE)
    • Developed new performance metrics focused on new business generation and customer retention

Key Audit Findings

  • Incentive plans were overly complex, with up to nine performance metrics
  • Multiple caps and thresholds made earnings unpredictable
  • Very few reps earned at or above their target incentive amount
  • Employee feedback revealed dissatisfaction with plan clarity and competitiveness
  • Plans lacked alignment with corporate goals, especially customer retention

Solution

  • Simplified sales incentive structures by implementing two performance metrics: New Business and Retention
  • Streamlined payout calculations and provided accelerated earnings for overachievement
  • Developed detailed plan documentation and payout calculators to support comprehension
  • Defined On-Target Earnings (OTE) and pay mix for each role to support recruitment and retention
  • Supplied launch materials and manager speaking notes
  • Reconfigured onboarding programs for new hires
  • Updated sales compensation governance policies

Results

  • Leadership Confidence: Energized management and renewed their belief in the team’s ability to deliver results
  • Employee Sentiment: Improved morale and stronger company affiliation
  • Talent Acquisition: Significant increase in applicants and hires
  • Revenue Growth: Trending upward in the second quarter post-implementation

Client Feedback

“Greg’s approach was both strategic and practical. He helped us cut through the complexity and build a plan that our sales team could understand and rally behind. The feedback from our reps has been overwhelmingly positive, and we’re already seeing stronger performance and engagement.”

Why It Matters

Sales compensation plans are more than financial tools – they shape behavior, culture, and performance. This case demonstrates how simplifying incentives and aligning them with business goals can drive clarity and motivation. It also highlights the value of listening to employee feedback to achieve meaningful change.