Gartner Research

Controlling Sales Compensation Spending Risk Without Demotivating Sellers

Published: 27 March 2019

ID: G00387946

Analyst(s): Steve Herz


Effective compensation plans both motivate sellers with the chance for rewards and guard against overspend on total payout expense. Sales operations leaders can balance these objectives by adopting design practices to identify, assess and target the most critical risks for payout overspend.

Table Of Contents
  • Key Challenges



  • Build Spending Risk Checkpoints Into the Sales Compensation Design Cycle to Structure Risk Analysis and Enhance Decision Making
    • Recommendations
  • Focus Compensation Plan Mechanisms Narrowly on Identified Risks to Avoid Unintended Limits on Seller Earning Potential
    • Design for the Footprint and Size of the Uncertainty
    • Use All Available Compensation Mechanisms
    • Manage Systematic or External Risk When Needed
    • Recommendations

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