Everyone wants to earn more money, but in today’s new normal economy raises are hard to come by. And where raises exist they amount to rather little. A highly incentivized comp plan presents the best opportunity for the company and its producers to be on the same winning ticket and amounts to potentially a lot more then a raise. For sales reps and recruiters, commission can be tied to margin cost with a sliding scale to motivate and retain people as they become more valuable to the company. Appropriate steps and risers are needed, with the levels and rates to be determined by the market, the competition and ones own P&L. Although we have designed dozens of plans over the years, no two are ever the same. The values are typical set on an annual production basis, but other time frames can work. A trail and error approach is best to arrive at a “win-win” program that works best and is reset as conditions warrant.
Optimal Management is the premier management consulting company to the staffing industry. We act as mentors to owners and managers to maximize their sales, profits and value of their company. We become an extension of our clients operations and are there for all of their staffing and business needs, from sales, marketing and compensation plans, to finance, M&A, general management and everything in between.