Preparing for the Evaluation Process
Evaluating the effectiveness of the sales compensation plan is an ongoing process. The team or individuals charged with implementing the evaluation procedures should prepare an interim analysis and a complete evaluation at the end of each performance period. For example, if the company has implemented an annual quota-based bonus with quarterly payouts, the team should complete an evaluation annually with interim (quarterly) analyses.
The first task, of course, is to confirm what, exactly, the evaluation process should accomplish. Typically, an evaluation includes examining the plan's alignment in three areas:
Business objectives: the extent to which the plan performance measures and mechanics support corporate ...
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