Alexander Group Survey Reveals Sales Compensation Plans Changing in 2021

COVID-19 had a disparate impact on revenue performance with some industry sectors suffering significant revenue declines, while others met their sales forecast, and a surprising few accelerated revenue performance, according to the results in the Alexander Group's 2021 Sales Compensation Trends Survey.

One of the most notable findings is that for the first time in the survey's 19-year history, 100% of the survey participants plan to make changes to their next fiscal year incentive program. The survey, which published in January, featured 109 participants.

"Sales departments were upended by the pandemic, but it gave revenue leaders an opportunity to reexamine go-to-customer strategies and the support programs such as sales compensation," said David Cichelli, survey editor and revenue growth advisor of the Alexander Group.

Other Noteworthy Highlights

• Pay Budgeting: Incentive costs declined -1.5% in 2020. 2021 will see modest budget increases in base pay (3%) and incentive costs (2%).
• Revenue: Revenue leaders had anticipated a 6% revenue growth in 2020; yet, the actual revenue growth was only 2%. Revenue performance was 90% of anticipated budget. However, companies are planning for a robust revenue increase of 8% for 2021.
• Staffing and Turnover: Turnover dropped in half for 2020 from the traditional 10% turnover rate for sellers to 5% in 2020. Management expects low turnover for 2021, anticipating a 5% turnover. The number of companies planning to trim headcount in 2021 more than doubled from 8.5% planned in 2020 to 17.5% for 2021.

Download the Executive Summary for more findings.

About Alexander Group

The Alexander Group provides revenue growth consulting services to the world's leading sales, marketing and service organizations. Founded in 1985, Alexander Group combines deep experience, proven methodologies and data-driven insights to help revenue leaders anticipate change, align their go-to-customer resources with company goals and make better informed decisions with one goal in mind?to grow revenue. The Alexander Group has offices in Atlanta, Chicago, London, New York, San Francisco, São Paulo, Scottsdale and Vero Beach.