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CASE STUDY

A compensation structure that works for all.

Challenge

A luxury plumbing company had an outdated sales compensation structure that was no longer meeting everyone’s needs. How could it be sensitive enough to reflect underachievement and incentivize performance and also remain competitive enough to attract top talent? How could it meet both company needs and that of the current and future sales teams?

Solution

We created a user-friendly model for the management team that was able to process the huge variety of inputs, outputs, and variables that they wanted to be taken into consideration including different commission structures, performance scenarios, expenses, contractual agreements, and sales performance data.

Outcome

When it was done, the new model was not only more efficient on an operational level, but it gave leadership the insights they needed to foresee, plan for and manage any profit risks in instances of underachieving sales performance. The bonus? While working on this project, we uncovered $156k in duplicate commission payments to third-party vendors that were credited back, boosting the company's end-of-year profit.

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