Consultant Joseph DiMisa offers five real-world metrics that will help you spot sales compensation problems early. DiMisa suggests compensation pros look at the following metrics:
- PAR Analysis: Analysis of churn, penetration and acquisition
- Pay Differentiation: Ratio of incentive pay to the median
- Average Pay Composition: Pay composition by component
- Performance Distributions: Histogram of sales rep performance by a given metric
- Compensation Cost of Sales: Total compensation (Base Pay + Commissions) for full year reps/corresponding annualized revenue
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