NSCA Releases Sales Compensation White Paper

Report features the results of various sales compensation plans from 27 NSCA member companies over a three-year period.

By PSW Staff May 31, 2016

The National Systems Contractors Association (NSCA) announces the release of its Sales Compensation White Paper, which features the results of compiling, evaluating, and comparing various sales compensation plans from some of the most successful NSCA members over a three-year period.

The NSCA members – systems integrators – featured in the Sales Compensation White Paper have revenues of between $5 million and $55 million. Each company had pre-tax net earnings of greater than 5% from 2012 to 2015. Their business locations were in cities with populations ranging from 250,000 to 5 million.

To date, 27 integration firms – all attendees of the Business & Leadership Conference – have participated in the development of this report. Twenty-six (26) companies are located in the United States; one company is located in Canada. The 27 companies were evaluated, and their compensation plans were then placed into one of six categories for comparison.

“This new research offers detailed insight into how profitable companies compensate sales staff,” says NSCA executive director Chuck Wilson. “The white paper answers the question of whether the right sales compensation plan offers a direct connection to company profit. And it pinpoints the factors that are just as important to profit as the right sales compensation plan.”

The white paper also analyzes:
—Managed services sales compensation plans
—Hybrid approaches (using traditional compensation plans for direct project sales teams and separate plans for aftermarket sales teams)
—Incentives for employees who deliver projects on time and on budget
—According to the information uncovered in the Sales Compensation White Paper, complex sales compensation plans require better, more expensive software and payroll management systems, and take additional time to administer; however, they allow for more tailoring to incentivize salespeople and are driven toward common company goals.——Simple compensation plans are easier to administer, but often incentivize just the salespeople.

This white paper was made possible thanks to the support of the 2016 Business & Leadership Conference sponsors. For more information, or to download the full report, visit the link below or call 800.446.6722.

The National Systems Contractors Association

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