Holiday Bonuses for the Sales Organization

Santa’s View on Pay for Performance By Jason Kearns, Canidium, and Scott Barton, NewSigma It’s the most highly anticipated time of the year: year end, holidays, bonuses and token gifts. This year, many cash-hording companies will open their purse strings to say thanks to their overworked masses. It takes the form of monetary bonus, gift …

Goals Under Attack!

Heard an interesting piece on NPR this evening (transcript here). One of the participants, Lisa Ordonez, a management professor at the University of Arizona was citing some examples of what she calls “Goals Gone Wild.” Here is what Ordonez had to say about a corporate goal of GM’s to achieve 29 percent market share: And …

The Dangerous Power of Pay

One aspect of compensation that has always fascinated me is the psychology of motivating people to do what you want. People are motivated by a lot of different things and there’s a lot of literature around that. However, the common belief is that money is number one and always will be, especially amongst sales people. …

Compensation Management is not for Sissies

Any of us who have had the pleasure of being responsible for compensation management can relate to some of the recent events at AIG, albeit on a smaller and hopefully less dramatic scale. If you’re not up to speed, this article will give you the scenario. Here are some key excerpts: The disclosures came as …

Recession Coming to a Close

Going into the weekend, I wanted to share some bright news I noticed this week. Evidently a team of leading economists from the National Association of Business Economists (NABE) have predicted an end of the recession to come in 2009. Yes, that’s this year! The NABE panel does temper the enthusiasm of the report saying …

Coaching with MBOs during Periods of Revenue Decline

In industries particularly hard hit by the struggling economy, even the best sales representatives may appear to be under performing based on the most important sales objective, the sales revenue target. How do you know if sales personnel are doing their jobs when their corporate customers’ budget freezes don’t allow for deals to close? Good …

Recession Driving Non-Cash Incentives?

Callidus and IncentOne describe a move by companies to use more non-cash based incentives mixed in with traditional cash based rewards in a jointly released article earlier this week. The headline indicates Challenging Economic Times as a driver. We did not hear much about this strategy from the customers we spoke to during our recent …