Guide
The Manufacturer and Wholesaler’s Guide to Sales Compensation Planning
This guide provides a structured approach to designing compensation plans for manufacturing and wholesale organizations. Sales, finance, HR, legal, marketing, compensation analysts, and outside experts should contribute to plan development. Effective programs must align with specific employee roles, reflect company culture, and encourage behaviors connected to revenue and strategic priorities. Plan measures should be objective, controllable, easy to track, and limited to three or fewer components. Individual performance should drive most variable pay, while team bonuses and SPIFs can support collaboration. Channel representatives need meaningful upside for sales and upsells, customer service teams require balanced measures for service, retention, and expansion, and managers should be rewar
