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IN PARTNERSHIP WITHFULL REPORTAUGUST 20212021 SALES COMPENSATIONPROGRAMS AND PRACTICESIN PARTNERSHIP WITH
CO NTENTS03About WorldatWork04Our Methodology05Our Partner06Key Findings11Results40Participant Profile46Results by Group10747Industry67Sector87Organization SizeDefinitions110 Contact Us202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork2
A BOUT WO R LDAT WO RKWorldatWork is the leading global nonprofit organization for professionalsengaged in the critically important practice of Total Rewards. We servethose who are responsible for cultivating inspired, engaged, productive, andcommitted workers in effective and rewarding workplaces. We guide themin the design and delivery of Total Reward programs with our educationand certification; idea exchange; thought leadership; knowledge creation;information sharing; research; advocacy; and networking.CO N N E C T W ITH U S202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork3
OU R M E TH O DO LOGYWorldatWork, in partnership with SalesGlobe, conducted a surveyto gather information on sales compensation plan structures andpractices to reward for sales success and drive performance to thegoals of the business.A total of 472 responses were received, representing organizationsof different sizes and across multiple industries. WorldatWorkobtained responses from full-time sales compensation professionalsvia the MarketCube panel online. Email invitations were sent directly to participants on 06/07/2021and results were collected over a 15-day period. Sample sizes varyby question.202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork4
O U R PA RTN ERWe are rethinking sales and organizationeffectiveness. SalesGlobe is a data-driven,creative problem-solving firm that solvesthe most challenging sales and organizationproblems.In a post-COVID business world, successwill come to the data-driven creativeproblem solvers.We’ve spent a long time in business. And duringthat time, we’ve seen too many companiesreplicating competitive practices and repeatingold approaches rather solving problems in away that would produce innovative solutions.SalesGlobe is committed to bringing newthinking to sales and organization effectivenessthat makes a difference and deliver results forour clients.Learn more at SalesGlobe.com and our RethinkSales Round TableContact us with your challenge atinfo@SalesGlobe.com SA LES S TR ATEGYA N D G O -TO - M A R K E T O RG A N IZ ATI O ND ES I G N A N D TA LENT I N C ENTI V ECO M PEN SATI O NA N D Q U OTA S202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork5
KE YFINDINGS202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork6
IN PARTNERSHIP WITHNO. 1KEY FINDINGSALE S ROLE S ARE G ROWI NGCompanies are investing in new resources,increasing headcount in inside sales rolesand the emerging use of hybrid sales roles (acombination of field and virtual).While companies are increasing sales employees,sales management is relatively flat.44%of companiesadded hybridsales.A L S O O F N OTE :Over the past 12 months: 44% of companies increasing inside sales37% of companies increasing field sales202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork7
IN PARTNERSHIP WITHNO. 2KEY FINDINGANTICI PATE D H IG H E RVOLU NTARY TU RNOVE RPUT TI NG PRE SSU REON H I RI NGAs the labor market tightens and talentis at a premium, sales organizationsare looking to the expansion of hybridroles leading the way with an averageof 67% of organizations planningincreases compared to 49% of fieldroles and 53% of inside sales roles.39%of organizations anticipate higher voluntarysales team turnover with technology expectedto be hit hardest (51%).202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork8
IN PARTNERSHIP WITHNO. 3KEY FINDINGORGAN I Z ATION S AREI NCRE A S I NG FI NANCIALAN D STRUC TU R ALCONTROLAs the economy is recovering, organizationsA L S O O F N OTE :have increased financial controls, nearly doubling 61% of companies use performance thresholdsthe use of performance thresholds, as well asas an entry point to incentive pay, a 25%incentive pay caps and bluebird policies.increase from 2020Companies simplified plan designs during the globalpandemic, but the usage ofperformance measures hasincreased to pre-pandemiclevels in 2021.56% of companies use incentive pay capsand 41% use bluebird policies to cap large deals 57% of companies are using three or moremeasures in their plans, indicating an increasedfocus on more specific results202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork9
IN PARTNERSHIP WITHNO. 4KEY FINDINGTECHNOLOGY ADVANCEMENTIMPACT STANDS OUT ONORGANIZATION’S STRATEGYIN NEXT 12 MONTHSTo remain competitive, sales organizations areplanning to invest in technology and sales skillstraining. Technology advancements are seen asa strong positive and as well as a concern for thesales organization; highlighting both strategicbenefits and competitive concerns.A L S O O F N OTE : 41% of companies rank technologyadvancements (e.g. AI) first as a positiveimpact on sales while 25% of companies rank47%of companiesrate salesskills trainingas a top priority for thenext 12 months.the same factor first as the most negativeimpact expected in the next 12 months 51% of companies plan investments intechnology, with CRM, SPM and virtualcommunications the priorities202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork10
RESU LTSCOSTOFSALES TE AMRETURN ON SALES EXPENSE 2021 WorldatWork11
IN PARTNERSHIP WITHSA LE S RO LE SQUESTIONPlease indicate which sales roles currently are used in your organization.RESULTS2021YOY DifferenceInside Sales Outbound33% 13%Field New Account Seller45% 11%Field Current Customer Seller43% 8%Inside Sales Inbound35% 8%Field Blended New Account and Current Customer Seller57% 7%Inside Sales Inbound and Outbound43% 7%Field First-Line Sales Manager49% 2%Field Channel Seller33% 1%Inside First-Line Sales Manager33% -2%n 472QUESTIONIn the past 12 months, has your organization addedany of the following hybrid sales roles?RESULTSHybrid New Account Seller20%Hybrid Current Customer Seller18%Hybrid Blended New Account and Current Customer Seller28%None of these56%n 472202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork12
IN PARTNERSHIP WITHSALE S H E ADCOU NTSI N L A ST 12 M O NTH SQUESTIONOf the sales roles your organization currently uses, how were salesheadcounts impacted in the last 12 months?RESULTSn ncreasedField New Account Seller1874%16%43%25%12%Field Current Customer Seller1764%17%46%19%14%Field Blended New Account andCurrent Customer Seller2352%13%50%25%10%Inside Sales Inbound1502%13%41%31%12%Inside Sales Outbound1402%13%39%29%16%Inside Sales Inboundand Outbound1793%9%44%35%10%Field Channel Seller1352%7%50%29%13%Field First-Line Sales Manager2051%14%59%16%10%Inside First-Line Sales Manager1350%13%64%15%8%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork13
IN PARTNERSHIP WITHSALE S H E ADCOU NTSI N N E X T 12 M O NTH SQUESTIONHow do you anticipate your organization’s sales headcounts to be impacted inthe next 12 months? Select sales roles as they are formally defined, not basedon temporary practices due to the global pandemic.RESULTSn ncreasedField New Account Seller1871%6%42%37%14%Field Current Customer Seller1760%8%47%31%14%Field Blended New Account andCurrent Customer Seller2351%3%44%42%10%Inside Sales Inbound1501%6%40%39%14%Inside Sales Outbound1401%4%39%38%19%Inside Sales Inboundand Outbound1791%2%47%38%12%Field Channel Seller1350%5%47%38%10%Field First-Line Sales Manager2051%7%61%22%10%Inside First-Line Sales Manager1350%4%56%33%6%Hybrid New Account Seller851%1%29%52%17%Hybrid Current Customer Seller783%3%31%37%27%Hybrid Blended New Account andCurrent Customer Seller1250%3%28%46%23%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork14
IN PARTNERSHIP WITHVO LU NTARY TU R N OVE RQUESTIONDoes your organization anticipate voluntary turnover changingfrom pre-pandemic levels?RESULTSYes, we anticipate higher voluntary turnover39%Yes, we anticipate lower voluntary turnover18%No, we do not anticipate any change to voluntary turnover43%n 404202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork15
IN PARTNERSHIP WITHPAY M IXQUESTIONPlease indicate the target pay mix for the following sales positionsin your organization based on their primary role.RESULTS20202021n BaseVariableBaseVariableField New Account Seller17156%46%57%43%Field Current Customer Seller16167%39%60%40%Field Blended New Account and CurrentCustomer Seller21863%37%60%40%Inside Sales Inbound14469%30%65%35%Inside Sales Outbound12970%30%59%41%Inside Sales Inbound and Outbound16471%30%64%36%Field Channel Seller12864%36%60%40%Field First-Line Sales Manager18866%34%63%37%Inside First-Line Sales Manager11967%34%66%34%Hybrid New Account Seller8155%45%Hybrid Current Customer Seller7554%46%Hybrid Blended New Account andCurrent Customer Seller11854%46%*new in 2021202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork16
IN PARTNERSHIP WITHU PS I DE POTE NTIALQUESTIONWhat is the upside potential as a percent of target incentive(in addition to target incentive) for a 90th percentile performer?RESULTS29%26%16%14% 50%50%100%200%15% 200%% of target incentiven 399202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork17
IN PARTNERSHIP WITHG OV E R N O RS/ TH R E S H O LDSQUESTIONDoes your organization utilize the following?RESULTS20202021288399Caps (a limitation to attainment and/or payout)35%56%Blue-bird/mega-deal policy: special treatment for very large deals28%41%Thresholds for new account sellers36%59%Thresholds for existing account sellers35%62%Regressive payout rate above a certain level of quota attainment(e.g. the rate of pay or effective commission rate decreases abovethat level)30%36%n 202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork18
IN PARTNERSHIP WITHN U M B E R O F PE R FO R M A N CE M E A SU R E SQUESTIONOn average, how many performance measures are included in the salescompensation plan for your organization’s primary sales roles?RESULTSOneTwoThreeFour 620202021n 154n 274n 397202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork19
IN PARTNERSHIP WITHTO P PE R FO R M A N CEM E A SU R E S BY SALE S RO LEQUESTIONPlease indicate the performance measures used in yourplan for primary sales roles. Please select all that apply.RESULTS68%accountretention67%product unitsor volume67%totalrevenueField first-line sales manager72%product unitsor volume71%gross profitdollars65%product unitsor volume62%65%accountretentiontotal revenueField blended new account andcurrent customer seller66%totalrevenue65%number ofnew accountsInside first-line sales manager65%58%new dealssigned or woncustomersatisfactionField new account %new deals signedor wonField current customer seller76%MBOsCONTINUED ON NEXT PAGE63%new dealssigned or won56%totalrevenueField channel seller202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork20
IN PARTNERSHIP WITHTO P PE R FO R M A N CEM E A SU R E S BY SALE S RO LEQUESTIONPlease indicate the performance measures used in yourplan for primary sales roles. Please select all that apply.RESULTS76%new dealssigned or ionproduct unitsor volume79%79%customersatisfaction63%number of newaccounts70%product unitsor volumeHybrid new account seller73%new dealssigned or won60%accountretention61%number ofnew accountscustomersatisfactionInside sales inboundand outboundHybrid blended new account andcurrent customer sellerproduct unitsor volume63%66%65%53%number ofnew accountscustomersatisfactionInside sales inbound60%customersatisfaction62%product unitsor volumeHybrid current customer seller60%accountretention58%MBOsInside sales outbound202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork21
IN PARTNERSHIP WITHPE R FO R M A N C E M E A SU R E SREVENUEQUESTIONPlease indicate the performance measures used in yourplan for primary sales roles. Please select all that apply.RESULTSn tionContractrenewalsField New Account Seller14149%57%24%27%Field Current Customer Seller13954%37%44%33%Field Blended New Account and CurrentCustomer Seller19365%44%39%34%Inside Sales Inbound11949%41%35%24%Inside Sales Outbound11052%41%37%28%Inside Sales Inbound and Outbound13651%43%33%32%Field Channel Seller10356%43%33%26%Field First-Line Sales Manage15867%32%33%27%Inside First-Line Sales Manager9266%42%35%26%Hybrid New Account Seller7749%51%39%17%Hybrid Current Customer Seller7341%52%43%30%Hybrid Blended New Account andCurrent Customer Seller11046%50%57%36%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork22
IN PARTNERSHIP WITHPE R FO R M A N C E M E A SU R E SBOO KI N GSQUESTIONPlease indicate the performance measures used in yourplan for primary sales roles. Please select all that apply.RESULTSn lcontractvalueField New Account Seller12943%36%39%38%Field Current Customer Seller12030%48%42%34%Field Blended New Account andCurrent Customer Seller14835%50%38%37%Inside Sales Inbound10537%39%44%28%Inside Sales Outbound9734%39%44%36%Inside Sales Inbound and Outbound11336%50%31%38%Field Channel Seller8627%37%37%50%Field First-Line Sales Manager11730%42%41%36%Inside First-Line Sales Manager)6932%54%32%38%Hybrid New Account Seller7453%51%37%27%Hybrid Current Customer Seller7243%47%43%29%Hybrid Blended New Account andCurrent Customer Seller10740%48%46%36%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork23
IN PARTNERSHIP WITHPE R FO R M A N C E M E A SU R E SVO LU M EQUESTIONPlease indicate the performance measures used in yourplan for primary sales roles. Please select all that apply.RESULTSn Productunits orvolumeNewdeals signedor wonField New Account Seller12851%65%Field Current Customer Seller11855%59%Field Blended New Account and Current Customer Seller15365%54%Inside Sales Inbound10570%41%Inside Sales Outbound9162%54%Inside Sales Inbound and Outbound10666%53%Field Channel Seller7851%63%Field First-Line Sales Manager11667%53%Inside First-Line Sales Manager6472%52%Hybrid New Account Seller7279%43%Hybrid Current Customer Seller6949%73%Hybrid Blended New Account and Current Customer Seller9946%76%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork24
IN PARTNERSHIP WITHPE R FO R M A N C E M E A SU R E SPRO F ITQUESTIONPlease indicate the performance measures used in yourplan for primary sales roles. Please select all that apply.RESULTSn ntageField New Account Seller10753%45%28%Field Current Customer Seller10250%47%30%Field Blended New Account andCurrent Customer Seller13355%44%30%Inside Sales Inbound8751%44%37%Inside Sales Outbound7958%43%33%Inside Sales Inbound and Outbound9856%42%29%Field Channel Seller6850%41%27%Field First-Line Sales Manager11057%42%29%Inside First-Line Sales Manager5571%44%18%Hybrid New Account Seller7263%51%15%Hybrid Current Customer Seller6644%49%41%Hybrid Blended New Account andCurrent Customer Seller9545%52%43%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork25
IN PARTNERSHIP WITHPE R FO R M A N C E M E A SU R E SACCOU NTSQUESTIONPlease indicate the performance measures used in yourplan for primary sales roles. Please select all that apply.RESULTSn Numberof newaccountsAccountretentionAccountpenetrationField New Account Seller11565%44%24%Field Current Customer Seller11045%66%26%Field Blended New Account andCurrent Customer Seller13359%62%41%Inside Sales Inbound9853%45%36%Inside Sales Outbound8754%60%28%Inside Sales Inbound and Outbound9963%54%23%Field Channel Seller6949%45%42%Field First-Line Sales Manager9760%68%34%Inside First-Line Sales Manager5767%63%40%Hybrid New Account Seller7063%54%27%Hybrid Current Customer Seller6834%60%35%Hybrid Blended New Account andCurrent Customer Seller10051%54%43%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork26
IN PARTNERSHIP WITHPE R FO R M A N C E M E A SU R E SOTH E RQUESTIONPlease indicate the performance measures used in your plan for primary salesroles. Please select all that apply.RESULTSn CustomersatisfactionMBOs(Managementby Objectives)Field New Account Seller8858%55%Field Current Customer Seller8360%51%Field Blended New Account andCurrent Customer Seller12558%62%Inside Sales Inbound8365%47%Inside Sales Outbound7256%58%Inside Sales Inbound and Outbound9761%50%Field Channel Seller6338%76%Field First-Line Sales Manager9752%66%Inside First-Line Sales Manager5652%66%Hybrid New Account Seller6779%36%Hybrid Current Customer Seller6760%57%Hybrid Blended New Account andCurrent Customer Seller9464%53%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork27
IN PARTNERSHIP WITHH OW PE R FO R M A N CEI S M E A SU R E DQUESTIONPlease indicate how performance is measured for your primary sales roles —on an individual or team basis, or both. Please select all that apply.RESULTS2020 (n 231)2021 (see n’s by role in each row)IndividualTeamRegionalBusiness IndividualTeamRegionalBusinessField New Account Seller (n 154)77%27%22%22%74%29%23%28%Field Current Customer Seller(n 145)73%39%17%23%66%30%24%24%Field Blended New Account andCurrent Customer Seller (n 203)82%30%22%24%77%34%21%28%Inside Sales Inbound (n 128)74%45%14%31%63%33%29%28%Inside Sales Outbound (n 114)77%43%18%15%70%31%27%22%Inside Sales Inbound andOutbound (n 147)82%27%10%16%65%35%20%25%Field Channel Seller (n 112)77%30%18%17%63%33%30%26%Field First-Line Sales Manager(n 172)39%72%24%26%38%58%31%30%Inside First-Line Sales Manager(n 2%62%39%35%24%Hybrid New Account Seller (n 75)Hybrid Current Customer Seller(n 73)*new in 2021Hybrid Blended New Account andCurrent Customer Seller (n 113)202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork28
IN PARTNERSHIP WITHQUOTA SQUESTIONAre your organization’s front-line individual sales contributorsresponsible for achieving a quota as part of their compensation plan?Participants not responding “Field first-line sales manager” or “Inside first-line sales manager” as aprimary sales role received this question.RESULTS72%of organization’s front-line individual salescontributors are responsible for achieving quotaas part of their sales compensation plan.Thinking of prior [year], whatpercentage of the sales teamfinished at or above quota?2020 (n 223)Thinking of the first twoquarters of [year], whatpercentage of the sales teamfinished at or above quota?2020 (n 223)What percentage of thesales organization do youbelieve will finishat or above quota by theend of [year]?56.7%2021 (n 264)47.3%39.4%2021 (n 264)49.9%2020 (n 223)44.0%2021 (n 264)58.9%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork29
IN PARTNERSHIP WITHQUOTA M ETH O DSQUESTIONWhat is the primary quota method your organization uses by account type?RESULTSn untsFlat16421%20%24%16%10%9%Flat 8%26%5%Market factors17312%15%24%19%17%13%Account 848%12%26%20%17%19%Account planning1807%11%24%21%22%16%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork30
IN PARTNERSHIP WITHSTAKE H O LDE R RO LE SQUESTIONIn your organization, what is the role of the following stakeholders tothe sales compensation plans? Please select all that apply.RESULTS2020 (n 255)2021n esignApprovalAdminBoard of %Sales %32%34%30%36%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork31
IN PARTNERSHIP WITHCO M M U N ICATIO N M ETH O DSQUESTIONWhat methods does your organization use to communicate the salescompensation plan? Please select all that apply.RESULTS48%Individual face-to-face one-on-one46%Sales system (e.g. CRM, SPM)44%40%Face-to-face small team35%Web conferencing sessions33%Virtual small team30%Executive presentations26%Electronic newsletter20%Internal social platformOtherWe do not communicate thesales compensation plan5%3%n 366202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork32
IN PARTNERSHIP WITHCO M M U N ICATIO N M ETH O DSE F F EC TIVE N E SSQUESTIONHow would you rate the effectiveness of the communications method you use?Participants responding “We do not communicate the sales compensation plan” to the methods their organization uses did notreceive this question. RESULTSMoreEffective%indicatingAttribute isEffective orVery Effective86%face-to-facesmall team87%individualvirtual 1:1individualface-toface tions73%LessEffectiveinternalsocialplatform202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork33
IN PARTNERSHIP WITHTECH N O LOGY USAG EQUESTIONFor each of the following sales-related tasks, how do you facilitate them?RESULTS2020 (n 248)Account-based salesand Compensationcalculation2021 (n 360)CurrentlyConductednot doingmanuallyanything25%11%*new option in %28%29%39%4%CurrentlyConductednot doingmanuallyanythingContract r relationshipmanagement (CRM)47%24%20%10%61%21%10%9%Lead generation,productivity, ement32%34%24%11%39%36%19%6%Sales analytics33%33%24%11%40%29%25%6%Sales engagement25%36%26%12%34%33%19%13%Sales and marketintelligence (i.e.business directories,market report services)32%30%20%17%39%32%17%13%202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork34
IN PARTNERSHIP WITHTECH N O LOGY VE N DO R USAG EQUESTIONWhich of the following vendors is your organization using?Participants responding “Third-party solution” for facilitating sales-related tasks received this %Salesforce15%11%Incentive Solutions4%11%Anaplan8%10%Varicent (formerly rformio3%4%Other22%14%n 202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork35
IN PARTNERSHIP WITHFUTU R E AR E A S O F I M PAC TRank in order of most positiveimpact you expect the followingfactors to have on your salesstrategy and organization in thenext 12 months.Rank in order of most negativeimpact you expect the followingfactors to have on your salesstrategy and organization in thenext 12 months.RESULTSRESULTSNumber 1 rankingNumber 1 rankingTechnologyadvacements (e.g. AI)41%16%New products/offeringsMacroeconomics (e.g.employment levels, economiccycles [fear of recession])Technologyadvacements (e.g. AI)Macroeconomics (e.g.employment levels, economiccycles [fear of recession])19%Competition18%12%Mergers and acquisitions7%Natural occurrences (e.g.weather events, health crises)Need for organic growth7%Geopolitical activity (e.g.Brexit, trade policy)Globalization5%25%Mergers and acquisitions11%7%5%Natural occurrences (e.g.weather events, health crises)3%Need for organic growth3%Geopolitical activity (e.g.Brexit, trade policy)3%Globalization3%Competition3%Cultural changes3%Demographic shifts(e.g. Millennials, Gen. Z)2%Demographic shifts(e.g. Millennials, Gen. Z)3%New products/offerings3%Cultural changesn 3531%n 353202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork36
IN PARTNERSHIP WITHFUTU R E PL AN N I NGQUESTIONWhich of the following is your sales organization planning forthe next 12 months? Please select all that apply.RESULTSInvesting in technology51%Sales skills training47%Revising approach to sales compensation45%Revising approach to sales coverage39%Task automation34%Recession-proofing the business23%Expand efforts/investment in experience management22%Altering sales strategy based upon election events21%None of these8%n 352202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork37
IN PARTNERSHIP WITHFUTU R E PL AN N I NG &TECH N O LOGY I N V E STM E NTSQUESTIONWhich of the following technology investments is your organizationplanning for the next 12 months? Please select all that apply.RESULTSCustomer Relationship Management (CRM)44%Sales Performance Management (SPM)39%Virtual communications29%Productivity monitoring software28%Customer experience measuring tool26%None of these28%n 352202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork38
IN PARTNERSHIP WITHM E RG E RS & ACQU I S ITIO N SHas your organizationbeen part of a merger oracquisition?RESULTS36%Yes, we have been involvedwith a merger or acquisitionduring the last 12 months19%What are the challenges yourorganization faces or has facedrelated to integrating acquiredsales organizations?Participants responding “Yes” to their organizations having beenpart of a merger or acquisition received this question. RESULTS59% Role definition and alignmentacross organizations55%Integration of the sales organization55% Incentive compensation alignment(harmonization across the roles)46%Total target compensation or pay levels38%Realizing planned synergiesYes, it was morethan one year ago34% Performance expectations across the45%33%Non 352organizationsCultural differences32% Realizing ROI or other expectedbenefits of the integration5%None of thesen 194202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork39
PARTICIPANTPROFILERETURN ON SALES EXPENSE 2021 WorldatWork40
IN PARTNERSHIP WITHO RGA N I Z ATI O N PRO F I LESECTORPrivate, publicly tradedSIZE41%Private, privately held 100 employees51%28%100 - 999 employeesNonprofit/Not-for-profit4%1,000 - 9,999 employeesGovernment/Public3% 10,000 employeesn 3529%42%21%n 352INDUSTRYTechnology(including althcare/Pharma12%8%All Other38%n 352202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork41
IN PARTNERSHIP WITHSA LE S PRO F I LE SF I E LDPerformance measuresField New AccountSellerMore likely to utilize highest new customerrevenue, number of new accounts and newdeals signed or wonLeast likely to utilize customer revenueretentionField CurrentCustomer SellerField Blended NewAccount and CurrentCustomer SellerMore likely to utilize customer revenueretention and account retentionLeast likely to utilize new customer revenueand account penetrationMore likely to utilize contract renewals,total revenue, and account penetrationPay mixOutside of hybrid roles,most likely to use variablecompensationLikely to have balancedbase to variable paycompensation compositionLikely to have balancedbase to variable paycompensation compositionMore likely to utilize annual contract valueand MBOsField Channel SellerLess likely to utilize bookings, accountpenetration, new customer bookings,gross profit percentage and customersatisfactionLikely to have balancedbase to variable paycompensation composition202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork42
IN PARTNERSHIP WITHSA LE S PRO F I LE SI N S I DEPerformance measuresMore likely to utilize total contractvalue, product units or volume, and pricerealizationInside Sales InboundLess likely to utilize new deals signed orwon, annual contract value, and contractrenewalsInside Sales OutboundMore likely to utilize total contract value,and gross profit dollarsPay mixAs non-manager, greatestvariation in pay mix; mostlikely to leverage basecompensationLikely to leverage basecompensationMore likely to utilize annual contract valueInside Sales Inboundand OutboundLess likely to utilize gross profit percentageand MBOs, and account penetrationLikely to leverage basecompensationCONTINUED ON NEXT PAGE202 1 S A L E S CO M P E N S AT I O N P R O G R A M S A N D P R AC T I C E S 2021 WorldatWork43
IN PARTNERSHIP WITHSA LE S PRO F I LE SM A N AG E RPerformance measuresPay mixMore likely to utilize total revenue andaccount retentionField First-LineSales ManagerInside First-LineSales ManagerLess likely to utilize new customer revenue,customer revenue retention, and newcustomer bookingsMore likely to utilize bookings, gross profitdollars, number or new accounts, totalrevenue, product units or volume, andMBOsLess likely to utili
Companies simplified plan designs during the global pandemic, but the usage of performance measures has increased to pre-pandemic levels in 2021. . Inside First-Line Sales Manager 119 67% 34% 66% 34% Hybrid New Account Seller 81 *new in 2021 55% 45% Hybrid Current Customer Seller 75 54% 46% Hybrid Blended New Account and Current Customer Seller
