After working together to redesign an ineffective sales compensation program, a major telecommunications firm is now getting the business results it needs, enhancing both sales volume and customer retention.

We listen.

Telecommunications is a very competitive industry. Competition for business is intense; customer loyalty is changing. It is becoming increasingly difficult to retain a customer base, much less increase sales results. The sales force really has their job cut out for them.

We learn.

When a telecommunications giant first approached Hewitt Associates, their sales compensation program was broken. The sales force had been exceeding its target goals, but the company wasn't realizing the revenue that should have accompanied those sales figures. One of the performance measures was difficult to track accurately, resulting in payment errors. Management also believed there were too many plans in place for the different sales roles.

The compensation program was generally seen as ineffective and costly. Employee morale was low and sinking. The company was suffering too, having to deal with complex administration, paying commissions without realizing appropriate business results, and unmotivated workers.

We work together to develop innovative solutions.

As partners, we analyzed what wasn't working with the sales compensation plan. We identified a new measure for revenue that more closely tracked with company results and is more accurately measured. We changed the payout to be more commission-like so payments matched results more closely, and we created one design template for all positions.

Our solution was an understandable, simple, and focused sales compensation plan. Now the sales force earns a percentage of what they sell, plus they have the opportunity to increase their earnings by a multiplier at the end of every quarter based on team revenue results. This combination of individual and team performance measures fits much better with the company's structure.

We measure results.

The success of this program can be seen through the tighter correlation between sales force incentives and revenues. Another measure of the success of the program is the time it takes to close compensation issues. With the new program designed by Hewitt, the problem-resolution cycle has been significantly reduced. The final word comes from the company's own sales force: Their issues are resolved, and their actions are driving business results.