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2012 Sales Compensation Trends Exec Summary Final Version
2012 Sales Compensation Trends Exec Summary Final Version
-Executive Summary-
January 6, 2012
Survey Editor: David J. Cichelli Senior Vice President The Alexander Group 480.315.5828 dcichelli@alexandergroup.com
2012 The Alexander Group, Inc.
Table of Contents
Executive Summary ...................................................................................................................................... 2 The following pages are available to participants only: Survey Highlights .......................................................................................................................................... 7 Survey Trends ............................................................................................................................................... 9 Survey Findings Overview .......................................................................................................................... 13 Full Survey Results ..................................................................................................................................... 19 2011 Sales Outcomes and 2012 Sales Prospects ..................................................................................... 20 Sales Force Headcount Changes ............................................................................................................... 21 Sales Department Goals and Costs ............................................................................................................ 24 2011 Sales Compensation Program Outcomes ......................................................................................... 26 2012 Sales Compensation Program Practices ........................................................................................... 30 Key Sales JobSales Compensation Practices ........................................................................................ 34 Pay Practices by Country: Pay Mix and Teaming ....................................................................................... 40 Demographics ............................................................................................................................................. 43
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Introduction
119 sales departments participated in this years 10 annual 2012 Sales Compensation Trends Survey . Participants provided data in December 2011 on what occurred in 2011 and what they think will happen in 2012. This survey represents practices affecting approximately 120,000 sales personnel.
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KEY METRICS
2012 Increase in Median Total Earnings for Primary Sales Job (Average 2012 Sales Compensation Program Costs: 4.8%)
10th Perc 0 25th Perc 0 50th Perc 3% 75th Perc 5.25 90th Perc 14
2012 Median Base Pay Increases (74.79% Plan to Grant Base Pay Increases Averaging 3.4%)
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Five-Year Trends
(Select Questions)
Comparison of 2008, 2009, 2010, 2011 and 2012 Sales Compensation Trends Survey Responses
Last Year's Actual Actual Median Compensation Payout Change as Compared to Previous Year 4.0% 8.0% Effective Acceptable Not Effective Above At Budget Below 55.80% 26.00% 18.20% 35.20% 27.80% 37.00% 2.5% 6.0% 57.61% 29.35% 13.04% 31.86% 25.82% 42.31% -5.0% -4.0% 56.49% 31.30% 12.21% 19.85% 21.43% 58.73% 5.0% 7.0% 58.33% 29.55% 12.12% 31.49% 28.35% 40.16% 5.0% 6.0% 63.56% 19.49% 16.94% 37.40% 26.96% 35.65% Actual Median Revenue Performance Compared to Previous Year Actual Sales Compensation Program Effectiveness (% of Companies)
Next Year's Projected Projected Median Increase in Target Compensation for Primary Sales Job 4.0% 10.0% 3.0% 5.0% 2.0% 6.5% 3.0% 8.0% 3.0% 7.5% Projected Median Revenue Increase for Next Year
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Data Collection/Methodology
The 2012 Sales Compensation Trends Survey represents responses from 119 participants. Multiple sales departments from the same company participate. Participants must have at least 20 full-time sales personnel. Participants provided data during the first three weeks of December 2011. The Alexander Group gathered responses via a web-based survey. For numerical response questions, we trimmed the top three and bottom three responses before the percentile and average calculations. Results were published during the first week of January 2012. Would You Like to Participate in Future Surveys Like This One? Please send an email to dcichelli@alexandergroup.com to join our Sales Effectiveness Survey Panel. Put Survey Panel in the subject line and provide your (complete) business card information. To be accepted as a survey panelist, you must meet the following criteria: 1) you must have at least 20 customer contact sales representatives; 2) you have no commercial interest in marketing/selling products or services to sales departments; and 3) you agree to fully complete surveys submitted to you. Survey panelists receive a free copy of the survey results. Being a Sales Effectiveness Survey Panelist is voluntary and you can opt-out at any time. We keep all responses in strict confidence and are not used for solicitation purposes.
The Alexander Group provides sales management consulting services to the world's leading sales organizations, serving Global 2000 companies from across all industries. Founded in 1985, the Alexander Group combines deep experience, a proven methodology and data-driven insights to help sales leaders anticipate change, align their sales force with company goals and make better informed decisions with one goal in mind to grow sales. The Alexander Group has offices in Atlanta, Chicago, San Francisco, Scottsdale and Stamford. To learn more about Alexander Group's services visit www.alexandergroup.com or call 480.998.9644.
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WorldatWork WorldatWork (www.worldatwork.org) is a not-for-profit organization providing education, conference and research focused on global human resources issues including compensation, benefits, work-life and integrated total rewards to attract, motivate and retain a talented workforce. Founded in 1955, WorldatWork has nearly 30,000 members in more than 100 countries. Its affiliate organization, WorldatWork Society of Certified Professionals , is the certifying body for the prestigious Certified Sales Compensation Professional (CSCP) and other professional designations. WorldatWork has offices in Scottsdale, Arizona, and Washington, D.C. About the Editor David J. Cichelli is Senior Vice President of the Alexander Group. He is author of McGraw Hills nd Compensating the Sales Force, 2 Edition 2010, and is a frequent speaker on sales effectiveness issues. He is a sales compensation instructor for various associations. He is a regular contributing author to professional and trade publications. He also recently published The Sales Growth Imperative, from McGraw Hill in 2010. To learn more about Davids recent book on sales compensation, visit www.compensatingthesalesforce.com. To learn about the Alexander Groups sales compensation services, visit www.salescompsolutions.com.
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