Four Tough Issues That Come with Sales Manager Compensation Plans
Regardless of the sales manager's role in your company, we believe you should be aware of the following four thorny plan design issues when you are changing the basis on which sales managers are paid.
Pay Differentials
While most companies have developed a base salary or total compensation program that provides increased earnings opportunities through career advancement, there is a broad range of practices related to pay differentials between the positions managed and the manager. For example, many companies' base salary programs have a 15 to 20 percent difference between the midpoints of successive salary ranges. An example of this might be:
Salary range A: $35,000 minimum / $50,000 ...
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