Research:
Proper compensation can help enable the evolution
of a sales model and drive the right types of
desired behaviors to adjust or transition a sales
strategy. This was the conclusion reached by the
Hub Group when the company searched for a way
to increase the efficiency of its sales force and to
place more emphasis on the company's higher-revenue-
generating accounts. The Hub Group had to
go through many computations to determine
which type of compensation strategy best fit its
needs, determining the feasibility of each option.
Thomas G. Knight, Partner at Axiom Consulting
Partners LLC, and Shannon Neumayer, Director of
Finance - Sales at Hub Group, Inc., present the
issues surrounding Hub Group's compensation
restructuring initiative:
The Hub Group's current situation
The business case for change
The objectives and company focus
The compensation plan design
Performance measures and plan mechanics
Complicating issues
Plan revisions
Knight and Neumayer also discuss the methods
used to determine the compensation strategy that
best fit the needs of the company and its people.
