TopMark’s Sales Compensation Market Pricing Template facilitates the sales compensation plan design process
by transforming your market data into valuable information
for evaluating current, or designing new, sales incentive
plans within the context of your sales roles and performance
expectations.
In addition to revealing the competitiveness and
mix of pay, TopMark’s Sales Compensation Market Pricing
Template provides tabular and graphic perspectives
regarding the degree that incentive payouts provide
sufficient:
Earnings potential for high performers; and
Differentiation for high vs. low performance.
The “cumulative frequency distribution” is the method
utilized to display position incumbents’ and marketplace
pay. This format enables you to assess the relative
competitiveness of position incumbents’ pay to the
marketplace and how well pay is aligned with the
market’s high, average and low performers.
TopMark’s Sales Compensation Market Pricing Template compares your incentive payouts to the market at
various levels of assumed performance using Incentive
Multiples. ® (1)
The value of incentive multiples is their identification
of the:
Amount of incentive payout differentiation in
your sales incentive plan across your performance
distribution and the market (e.g., “target” vs.
“minimum acceptable,” “excellent” vs. “target,”
and “outstanding” vs. “excellent”); and
Extent that performance recognition accelerates
as increasingly difficult performance levels are
attained.
(1) For the purposes of TopMark’s Sales Compensation
Market Pricing Template, we define “outstanding”
performers as the 90th percentile of position incumbents
in a sales position and the marketplace of comparable
positions. Therefore, the 90th percentile payout
in your incentive plan and the market should correspond
to the award paid at “outstanding” performance.
The 75th, 50th and 25th percentiles match the “excellent,”
“on-quota” and “minimum acceptable performance levels
and payouts, respectively.
