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Top Sales Compensation Challenge

(July 17, 2012) Setting Fair and Accurate Sales Quotas Ranks as Top Sales Compensation Challenge Among Managers

WorldatWork research on sales compensation practices consistently finds that a majority of organizations struggle with setting fair and accurate sales quotas to effectively incent their salesforces. Accurate quota setting was a major incentive compensation issue cited in the “2012 Sales Compensation Practices Survey for the High-Tech Industry,” conducted with global sales and marketing consulting firm ZS Associates. How the economy impacts quota allocation and goal setting was addressed in the “Sales Compensation Programs and Practices” survey by WorldatWork.

“The biggest challenge in quota setting is finding the right balance,” said Jim Stoeckmann, a certified sales compensation professional (CSCP) and practice leader for WorldatWork. “Setting quotas too high can give organizations the illusion that they’re closer to making their revenue goals, yet it may frustrate a salesforce that sees the quota as unachievable. Setting them too low will negatively impact revenue and result in underperforming sales teams.”

WorldatWork focus group research conducted in May 2012 also found that sales compensation professionals are equally frustrated with finding education, resources and training focused on quota setting.

To meet this need, WorldatWork is introducing Sales Quota Setting — Getting the Results You Need. This course will provide attendees with the knowledge and skills needed to find the right balance in setting fair and obtainable sales quotas. Participants will gain an overview of the quota setting process; learn how to collect data and metrics; understand different quota methods; and how to evaluate and choose the best one. Participants will perform sensitivity testing and simulations to check for accuracy and fairness. They will also learn effective communications techniques to improve organizational buy-in of quota incentive plans.

Developed in partnership with ZS Associates, Inc., Sales Quota Setting will be available Oct. 16 as a blended learning course and corporate education as well as through WorldatWork local associations.

Sales Quota Setting — Getting the Results You Need will be taught by a team led by Chad Albrecht, a certified sales compensation professional (CSCP) and principal with ZS Associates, Inc., a global leader in sales and marketing consulting, outsourcing, technology and software. Albrecht has worked with clients in many industries including medical devices, software, business services, telecom, distribution and manufacturing.

About WorldatWork®:
The Total Rewards Association

WorldatWork ( is a not-for-profit organization providing education, conferences 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 Compensation Professional® (CCP®), Certified Benefits Professional® (CBP), Global Remuneration Professional (GRP®), Work-Life Certified Professional™ (WLCP®), Certified Sales Compensation Professional™ (CSCP™) and Certified Executive Compensation Professional™ (CECP™). WorldatWork has offices in Scottsdale, Ariz., and Washington, D.C.

The WorldatWork group of registered marks includes: Alliance for Work-Life Progress® or AWLP®, workspan®, WorldatWork ® Journal, and Compensation Conundrum®.

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