Rep Incentive Schemes: Design Them to Drive the Right Behavior

An incentive is a message

What you reward gets repeated. An incentive tied only to sales may neglect collection or coverage. A carefully designed incentive steers the rep toward a balanced mix of volume, quality and cash.

Principles of effective design

• Tie the incentive to a mix of sales, collection and coverage.
• Keep the rules simple and clear to all.
• Reward exceeding targets with progressive tiers.
• Compute it from documented data the rep can see.

Transparency builds trust

When reps understand how their incentive is computed and trust the numbers, they focus on earning it instead of arguing about it. A transparent scheme lifts performance and keeps cost under control.

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