An example compensation communication plan includes a framework of meetings and materials that inform leadership and their teams of sales compensation policies and structures.
The communication framework should include:
- Workshops led by the sales leader that goes over changes to the existing compensation structure
- Explanations of “the why” that led to the changes
- Math rundowns on how and why leadership came up with the numbers they did
- Resources and enablement covering how the company will support the team with the new business targets
- Feedback channels for the team to ask questions and share their thoughts
Below is an example compensation communication plan to follow.
First meeting: Sales Leadership
This meeting should be led by the executive team who led the comp plan design and attended by sales leadership (directors, managers). Use this time to explain the mechanics behind the compensation plan, why the changes, and how it images the team and whom. Explain the benefits of the changes and how to optmize the new plan. Share documents, FAQs, videos, what-if calculators and any other launch materials you will later give to the team.
Second meeting: Sales Team (high level)
Your second meeting will be with the sales team and should be led by the VP of Sales. Give a high level review and use this time to energize and rally your team around the upcoming changes. Provide a timeline and send an email to everyone following the meeting that recaps the discussion.
Third meeting: Sales Team (detailed review)
Now that the team has an understanding of upcoming changes, your third meeting should be dedicated to a deep dive of the changes. Explain the plan and impact. Give detailed plan documents, FAQs, a commission calculator, and other materials.
Fourth meeting: One-on-ones
Your sales managers should run the last meeting in your example compensation communication plan. This will be a one-on-one with the individual contributors of their team, giving reps an opportunity to ask questions or raise concerns. At the end of this meeting, managers should distribute the commission agreement and ask for rep signature.