A new study shows that American companies are increasingly adding team-based incentives to their compensation structures to curb staff infighting and roguish behavior.
The study of more than 800 companies’ practices between 2010 and 2016, commissioned by Korn Ferry, found a third now include business-unit or divisional performance in their incentive compensation packages. That’s up from 16% in 2010.
Company-wide performance is now a factor in 26% of cases, up from 15% in 2010.
To be sure, applying a more collectively-based pay model has its risks. Star salespeople used to raking in large commissions may well head for the door.
Indeed, the research found that personal achievement remains highly valued, with 83% of companies still measuring individual performance for compensation purposes. The figure, however, is down nearly 10% from recent years.
“What we are seeing today is a better balance between measuring the success of the organization and the success of the individual,” Korn Ferry practice leader Tom Hill said.
The changes come as business leaders acknowledge that sales is a team effort, Hill said, involving multiple functions such as lead generation, proposal writing, technical support and account management. “Rewarding groups accordingly creates the right behaviors among sales team members, who are working together toward one common goal.”
For its part, Wells Fargo has pledged to shift its sales culture to reward staff for customer service and risk management. Still, current CEO Tim Sloan said the bank also wants to avoid “over-correcting” for the scandal. “There’s nothing wrong with cross sell done right,” he told a recent investor briefing.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
