Client case study: review of sales commission and bonus plans

Tailored sales commission plans renew the alignment between reward and business goals for a UK commercial vehicles business

The client, a sales-based organisation in the commercial vehicles sector, had identified problems with its multiple commission and bonus plans.  While some of the more recently-designed plans were well-documented and robustly designed, a number of the older plans had clearly outlived their usefulness.  Inconsistencies between the plans and poorly-defined governance were of particular concern to the HR Director.

Yellow Hat worked with the client’s HR, sales and finance teams to review all the plans, building on the client’s ideas to develop a streamlined set of incentives for its salesforce.  The Plans were rigourously modelled by Yellow Hat to ensure that they were delivering against the desired business results, and that the impact of the incentive payments on profit margins was fully understood prior to launch.

The client held targeted discussions with key stakeholders during the later stages of plan design to increase the level of buy-in.  Yellow Hat supported the client throughout this process, providing communications materials and documenting the plans and administration processes to support their ongoing management.  From the client’s perspective, a long-overdue project has been successfully completed, and the benefits are already being seen from the renewed interest resulting from the well-managed launch programme, and from early signs of changing behaviours as the workforce adapts to the new strategic focus provided by the re-launched plans.

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