Top 12 Sales Compensation Challenges You Didn’t Hear at World at Work 2024

Introduction

For sales compensation professionals, missing out on attending the World at Work Sales Compensation 2024 conference may feel like a missed opportunity to connect with peers and learn about the latest trends and challenges in the industry. If you're among those who couldn't make it, don’t worry.

Here's a recap of the top problems sales compensation professionals face—many of which we highlighted during our discussions at the event. If any of these resonate with you, it may be time to explore a comprehensive solution like Incentivate.

1) Long Implementation Timelines and Uncertainty

One of the most common concerns we heard was the length and unpredictability of implementation timelines. Sales performance management (SPM) and incentive compensation management (ICM) systems are often complex and require significant resources. Many professionals noted that implementations frequently exceed the initial estimates, making planning and delivering on time hard. This unpredictability can stall business operations and leave organizations scrambling for quick fixes.

2) Decision Paralysis: SPM vs. ICM

A major debate among professionals was whether to invest in a full SPM suite, including planning, modeling, territories, quotas (T&Q), incentives, and reporting or opt for an ICM solution that only focuses on incentives and reporting. While the full SPM solution offers broader benefits, securing stakeholder buy-in is challenging due to budget constraints and cross-departmental involvement. Many are stuck in this decision-making limbo, unsure of the best path forward.

3) Audit Challenges and Reporting Difficulties

Companies with strict auditing requirements often struggle with existing solutions. Even when audit data is available, it’s not easily accessible or reportable, making audits stressful and time-consuming. The inability to generate and share detailed audit reports compounds these frustrations, leading to compliance issues and additional manual effort.

4) Manual Work Despite Automation

Despite investing in automated systems, many professionals manually manage up to 20% of their incentive calculations. It can be due to system limitations, data inconsistencies, or missing functionalities, but it ultimately defeats the purpose of automation and adds unnecessary complexity to the workflow.

5) Salesforce Engagement and Complaints

Another recurring theme was the lack of engagement from sales forces. Many professionals noted that their teams constantly complain about the complexity of their incentive plans. The lack of tools to help sales reps understand and visualize their compensation plans further drives disengagement, leading to dissatisfaction and potential turnover among top performers.

6) Payroll Delays Due to Data Issues

One of the more practical challenges mentioned was meeting payroll timelines. Inconsistent or incorrect data often delays payroll, as incentive calculations are manually corrected or reprocessed. This delay can hurt employee trust and create unnecessary tension between departments. Automating payroll minimizes human errors in calculations, ensuring employees are paid correctly.

7) High Dispute Rates Due to Lack of Detailed Reporting

Sales compensation professionals frequently deal with disputes over incentive calculations. The absence of detailed, transparent reports creates confusion among the salesforce, leading to a surge in disputes. A solution providing clear, granular insights into compensation plans and payments is essential for reducing friction and motivating sales teams.

8) Tedious Approval Processes

Managing approval processes through emails and Excel spreadsheets is cumbersome, time-consuming, and hard to track. Many professionals expressed the need for streamlined workflows that allow quick adjustments, overrides, and approvals without relying on outdated methods.

9) System Usability Issues

Usability is a big problem for many companies using traditional systems. These platforms often aren't intuitive, making it difficult for sales managers and reps to navigate common tasks. Additionally, slow loading times and clunky interfaces only exacerbate the frustration, reducing overall productivity.

10) Lack of Operational Insights

Existing tools often fail to deliver actionable insights into operational efficiency. Without these insights, sales compensation professionals are left guessing which parts of their process are slowing them down. This lack of visibility can result in poor decision-making and missed opportunities for optimization.

11) Integration Woes

Many organizations struggle with integrating their sales compensation system with other upstream and downstream systems, leading to fragmented workflows and disjointed reporting. Sales compensation professionals expressed a need for seamless, end-to-end automation to ensure a smooth data flow across systems.

12) Cost Concerns and Value Perception

Finally, concerns about the cost of sales compensation solutions were raised. Many companies feel that the value they receive does not justify the cost, particularly when systems are slow, difficult to use, or require extensive manual intervention. Ensuring your sales compensation solution provides clear value is crucial for long-term success.

How Incentivate Can Help

If any of these challenges sound familiar, you’re not alone. Incentivate is designed to address these specific pain points, offering a user-friendly, intuitive platform with quick implementation times, seamless integration, and robust audit capabilities.

Our focus on operational insights and stakeholder engagement ensures your salesforce is empowered, motivated, and aligned with your compensation goals. With a fully automated and customizable solution, Incentivate provides the transparency and speed that sales compensation professionals need to stay ahead of the curve.

Interested in learning more about how Incentivate can solve your unique sales compensation challenges? Get in touch with us today to schedule a personalized demo!