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Sales Compensation Body of Knowledge
What is the Body of Knowledge?
The Body of Knowledge (BOK) is a term used to represent the complete set of concepts, terms and activities that make up a profession, typically defined by a job or practice analysis study of practitioners by the relevant professional association. The WorldatWork sales compensation body of knowledge areas and content for sales compensation are listed below.
Click on the four knowledge areas below to see what is contained within each. An easy-to-print Body of Knowledge document is also available here. Practitioners interested in taking the exam for the new CSCP™ designation should be knowledgeable in each of the four sales compensation knowledge areas.
| Strategic Management of Sales Compensation |
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- Demonstrate business acumen in strategic planning for sales compensation
- Determine organizational readiness for sales compensation
- Understand the purpose of sales compensation and the importance of sales compensation to the organization’s business, products and services
- Determine when sales compensation is an appropriate response to a business need
- Understand the human resources strategy and total rewards strategy
- Ensure alignment between sales compensation plans and the organization’s compensation and business strategies
- Understand the go-to-market strategy and its relationship to the channel strategy
- Understand the financial metrics that measure the organization’s success and the sales performance measures that affect them
- Understand appropriate uses and general features of all forms of variable pay
- Recognize changes in the business environment that affect sales compensation
- Track industry trends and practices
- Lead the decision-making process with Senior Leadership (Sales and other functions) in the sales planning process
- Demonstrate effective influencing skills when interacting with senior management
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| Design Sales Compensation Plans |
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- Identify the organization’s desired competitive position for jobs covered by the sales compensation plan
- Benchmark the organization’s competitive position for jobs covered by the sales compensation plan
- Understand key elements of the selling process
- Understand sales compensation terms (e.g., target cash compensation, mix, leverage, commission, etc.)
- Understand the types of sales compensation plans and payout mechanics
- Assess the alignment between sales compensation and other total rewards programs
- Identify appropriate members of the sales compensation design team
- Partner with the sales compensation design team on plan design
- Identify considerations for goal-setting
- Identify the linkage between the content of specific jobs and the elements of sales compensation designs
- Determine eligibility of job roles for sales compensation
- Identify factors that should be included in various sales compensation plan designs
- Identify the behaviors that drive sales productivity
- Identify appropriate performance measures and weighting of measures
- Understand common sales compensation formula types
- Determine formulas for commission plans
- Determine quotas for commission plans
- Determine formulas for bonus plans
- Determine quotas for bonus plans
- Partner with Finance or the appropriate department on financial modeling of sales compensation formulas to determine earnings impact and affordability of various alternatives
- Design a “draw” feature for a sales compensation plan
- Utilize special plan designs to address specific selling situations
- Identify appropriate performance periods and payout cycles for sales compensation plans
- Determine the appropriate mix (salary-incentive ratio) for given jobs
- Determine appropriate leverage (incentive upside opportunity)
- Understand processes for developing coverage model, account structures/segmentationand territories for sales representatives
- Identify and explain potential plan qualifiers
- Incorporate clawback/payback features as appropriate
- Develop or assist in the development of SPIFFs
- Ensure that sales compensation plan designs comply with applicable legislation/regulation
- Consult with outside experts on sales compensation plan design
- Modify sales compensation plans for multiple countries of operation
- Understand the impact of regional/cultural differences on the go-to-market strategy and channel strategy
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| Administer Sales Compensation Plans |
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- Develop appropriate timelines for programming, communication and training
- Communicate business drivers for sales compensation plans to internal stakeholders
- Communicate sales compensation plan details to plan participants
- Train field sales staff on compensation-related processes and procedures
- Collaborate with other internal departments on plan administration
- Demonstrate a working knowledge of software/programs used to administer sales compensation plans
- Work with the IT Department to set system requirements for tracking plan performance and payouts
- Implement business system tools to support the sales compensation program
- Work with service providers and/or consultants on sales compensation plan administration
- Participate in the review and validation of sales revenue, plan payouts and program exceptions
- Communicate effectively with sales staff regarding compensation-related and sales operation issues
- Interact effectively with senior management and regional level executives on plan operation and performance
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| Evaluate Sales Compensation Plan Effectiveness |
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- Use statistical tools and processes to evaluate plan performance
- Survey the sales force and other stakeholders for qualitative feedback on plan performance
- Develop/complete sales performance reports and ad hoc analysis
- Communicate sales compensation plan results to senior management
- Evaluate the performance of sales compensation service providers/consultants
- Monitor the impact of changes in sales channels and sales coverage
- Identify and document unintended outcomes of sales compensation plans
- Identify and implement required enhancements to sales compensation plans
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