Optimistic Forecasts for 2010 Drive Sales Force Staffing, Compensation Design, Watson Wyatt Survey Finds
WASHINGTON, D.C., September 14, 2009 — Corporate sales forces are anticipating better times ahead, as companies project higher revenues and sales goals for next year, according to a survey by Watson Wyatt, a leading global consulting firm. Additionally, the number of employers planning further sales force layoffs have declined sharply as the economy shows signs of improvement.
The survey found that the vast majority (83 percent) of companies project revenue growth in 2010, with 43 percent of this group expecting revenues to increase by 6 percent or more. Also, slightly more than half (51 percent) expect higher sales goals and quotas for next year. Only 12 percent anticipate decreasing their sales staffing levels in the upcoming fiscal year (compared with 53 percent in February), and 16 percent actually anticipate increasing their sales force head count. Voluntary sales force turnover fell in 2009; 81 percent of respondents report less than 10 percent voluntary turnover, compared with 51 percent in February. Watson Wyatt’s survey was conducted in August 2009 and includes responses from sales executives at 129 large companies.
However, 60 percent think that sales force productivity and efficiency remains a significant concern, while 48 percent believe that sales force quota and goal setting is a concern. About one third (35 percent) also are concerned about sales force morale and motivation, while 40 percent are concerned with coaching and development. Less than half (47 percent) report being satisfied or very satisfied with their goal-setting processes.
“Optimistic forecasts are good news for sales forces, which can look forward to fewer layoffs and potentially higher compensation,” said John Bremen, global director of sales effectiveness and compensation at Watson Wyatt. “Yet with budgets still tight, many companies will look to get more out of their current salespeople for next year and to align incentives with changing business objectives.”
Alterations companies plan to make to their sales incentive plans in the next fiscal year include changing performance measures (60 percent), changing performance measure weightings (50 percent) and changing incentive formulae or mechanics (49 percent). Twenty-eight percent also expect to change their pay mix.
