Sales Compensation More Complex

Global markets are making it tougher to use compensation plans to boost performance, a survey finds.

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Performance at sales organizations is slipping and overly complex compensation plans geared to the global market may be a reason why, according to a joint survey by Deloitte and Oracle.

More than 40 percent of 185 employers recently polled said their sales team didn't meet set goals last year. At the same, more than half said their sales compensation plans had grown more complex in the past two years, though few were satisfied with the results, the survey found. Typically, compensation plans are a key driver to boosting sales performance.

Many employers blamed moves into the global market on making sales compensation plans far more difficult to manage, the survey found.

"Sales force leadership must tackle the inevitable challenges that come with global growth and changing market conditions by partnering with such business units as human resources, technology and finance and finding ways to simplify their programs," Gretchen Alarcon, a vice president at Oracle, said in a statement.

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