When evaluating or creating a sales compensation plan,a first step should be to:

Question

Quizplus · Accepted Answer

Evaluating how salespeople are allocating their time is a critical step in developing a sales compensation plan. It will help managers determine which activities are most important and should be incentivized in the plan. Scrapping the existing plan without evaluating what works and what doesn't would be hasty, and allowing salespeople to design their own plans could lead to inconsistencies and unfairness. Estimating the impact of a straight salary plan could be useful, but it shouldn't be the first step in designing the plan.

When Evaluating or Creating a Sales Compensation Plan,a First Step