Key takes from “Navigating Compensation Planning in a Volatile Job Market”
QuotaPath and Pavilion recently partnered for the ebook: Navigating Compensation Planning in a Volatile Job Market. Get a preview of the ebook below followed by three key takeaways. Download the full ebook here.
This year has been a year of extremes in the tech world. From talent shortages to recent lay-offs, it has been a precarious time for many in the labor market. Despite all of this volatility, something remains constant — the need for comprehensive compensation packages that exceed employee expectations.
Employees today still want remote work, flexibility, and higher wages, which have not been increasing at the same rate as inflation. In fact, according to Hubspot, voluntary turnover at for-profit businesses hovers around 25%. Further, 25% of respondents to a PayScale study said they left their jobs for higher pay. While this is likely to slow down due to the aforementioned lay-offs and significant decreases in funding, hiring remains a challenge and a good overall compensation package is as important as ever.
Moreover, competitive compensation packages are a strong way to motivate your team and retain your best talent. As Deloitte says, “Sales compensation is an integral part of salesforce effectiveness and involves aligning all aspects of plan design, from pay mix to target setting to the product and market strategy.”
First, offering the choice between commissions and equity is becoming more prevalent.
“I want to be generous with sales commissions, but for me, it’s a little bit of picking and choosing – equity or commission,” says Akash Bhatia, Co-founder at Epoch AI. “To incentivize salespeople, I show them what they can pick from and they can decide what makes them most happy with their compensation package.”
Second, your top sales talent and recruits crave compensation clarity.
“Good [account executives] really want to understand their commission plans,” said
Sam Seigle, VP of Finance at Zoomin.
This is where compensation management software, like QuotaPath, comes in to provide transparency and the ability to accurately forecast earnings.
And third, you can’t scale without alignment around compensation.
“It is important that sales leadership, RevOps, and finance are all in alignment with the sales commission structure and processes,” said Conor O’Donoghue, CFO at Ocrolus. Without alignment across leadership and departments, it will be difficult to scale comp effectively.
To learn more about QuotaPath’s commissions software and commission management services, schedule a demo with the team today.