The Alexander Group’s 2017 Sales Compensation Trends Survey reports expected modest pay progression for sales personnel. The median planned increase in total pay (base and incentive) for 2017 will be 2 percent.

Survey participants expect a 2 percent median increase in 2017 in total earnings for sales personnel; a drop from the recent historical trend of 3 percent. The actual median increase in incentive payments in 2016 was 1 percent over 2015.

The five-year trend of the projected increase in compensation payouts, as compared to actual payouts, showed a drop in 2016 for expected payout (3 percent to 1 percent). This runs counter to the practice that the incentive plan normally matches (2012) or more commonly overpays the budget each year (2013, 2014 and 2015).

Sales leadership was expecting a 9 percent growth in revenue at the beginning of 2016, yet recorded a median growth of 3.5 percent, woefully underperforming their expectations, reported David Cichelli, survey editor and senior vice president of the Alexander Group. As a result of this lack-luster sales performance, Cichelli continued, the overall median increase in incentive pay for 2016 was 1 percent, significantly below the expected budgeted 3 percent.

The participants also provided detail on governance and accountability. Here is an overview of the findings:

  • Ownership: sales management/sales operations
  • Redesign: sales management/sales operations
  • Final Approval: CEO, COO, president, general manager
  • Program Management: sales operations
  • Program Administration: finance/sales operations

To learn more about the findings, download a complimentary Executive Summary at http://www.alexandergroup.com/resources/survey-findings/2017-sales-compensation-trends/.

More than 120 companies participated in the 15th annual Sales Compensation Trends Survey. The annual survey questionnaire collects trend (repeating data questions: budgets, turnover, quota performance and program design) and varied select focused topics (2017: governance and program administration). Participants provided responses in November and December 2016, and received the 115-page report the second week in January 2017.

About the Alexander Group, Inc.

The Alexander Group (www.alexandergroup.com) provides revenue growth consulting services to the world’s leading sales and marketing organizations, serving Global 2000 companies across all industries. Founded in 1985, Alexander Group combines deep experience, a proven methodology and data-driven insights to help revenue leaders anticipate change, align their go-to-market 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, San Francisco, Scottsdale, Stamford and London.