Compensation Plan / Compensation Architecture

Creating or developing a Compensation Plan, or Compensation Architecture ("Comp Arc") is a mission critical part of the company alignment process. The Comp Arch essentially defines how Sales, Marketing, and Business Related employees are to be compensated during the Fiscal Year. The "Comp Arc" specifies how these employees are compensated with a Fixed % and Variable % Annual Salary. No worries, not all employees need to be subject to a Compensation Plan, only those that have a direct sales, or sales support / business related functions (e.g. pre-sales engineers, post-sales support and services, and finance functions where their efforts directly support the sales efforts, such as Finance Revenue / Revenue Support; also Compliance employees where compliance revenues exist). For those employees who are specifically effected by the Compensation Architecture, the excitement lies in knowing that their annual salary is more than just a fixed salary, but is ultimately related to the annual performance of the company at large. The %Fixed and %Variable income should vary depending on the function of the employee. Sales employees are dedicated / motivated to achieving or better, overachieving, annual sales targets. The % Fixed and % Variable can range from 60% Fixed and 40% Variable to 70% Fixed, and 30% Variable. Other sales and business related functions might be on a 80% Fixed and 20% Variable basis. Others on a 90% Fixed and 10 % Variable. All other employees might be entitled to annual bonuses related to the annual performance to the company. What is critical in the Compensation Plan / Compensation Architecture is to ensure a direct linkage of the Plan to the Strategic Goals and Objectives of the Company. This is a mission critical part of the alignment process. The Comp Arc can be construed as a form of art, in which the canvas and image are designed to create excitement. This is a 4 day, 2.5hr per day workshop Deliverable: A formal Sales Compensation Plan.