Evolution of Sales Compensation Strategies

Sales compensation has evolved over the years, transitioning from a simple math problem to a tool for motivating and retaining sales reps. Initially, sales compensation was merely a line item without a clear strategy behind it. However, in recent years, the focus has shifted to aligning compensation with desired behaviors, customer experiences, and company objectives. This evolution highlights the need to consider not only what salespeople achieve but also how they achieve it, emphasizing engagement, KPIs, and non-monetary incentives.