Designing effective sales commission plans can significantly drive revenue - but they can also backfire if not carefully structured and maintained. From unclear policies to misaligned incentives, even well-intentioned commission strategies can introduce friction, disputes, or low morale.
In this article, we explore the most common challenges of compensation design and management, along with actionable strategies to overcome them. Whether you’re building a new commission plan or refining an existing one, these insights will help you reduce risk and improve outcomes.
One of the most frequent compensation issues examples is a commission plan that unintentionally incentivizes the wrong behavior. For instance, a rep might close deals that don’t align with long-term company goals just to meet their quota.
Align commission metrics with key business objectives.
Use tiered or weighted metrics that reward strategic deal-making.
Regularly review how sales incentives are influencing rep behavior.
A sales commission structure that’s too complex creates confusion, especially if reps can’t easily understand how their earnings are calculated.
Use clear, transparent formulas.
Provide reps with real-time access to earnings data via tools like Bentega.
Limit the number of variables in each commission plan to what's essential.
Manual tracking of sales commission plans can lead to time-consuming processes, errors, and payment delays. This is a core challenge in compensation management, especially as teams scale.
Implement automated sales commission software like Bentega.
Integrate commission tracking with your CRM and payroll systems.
Standardize plan templates across roles and regions.
Rigid commission plans may not keep pace with changes in market conditions, new product lines, or shifting company priorities.
Design modular plans that can be adjusted mid-cycle.
Incorporate feedback loops with sales managers.
Review plan performance quarterly to adapt incentives quickly.
If sales incentives feel unfair or favor a few top performers, morale can suffer across the team. This is one of the more subtle challenges in compensation and benefits.
Ensure baseline earnings are fair with commission on top.
Recognize different types of success, not just revenue (e.g., customer satisfaction).
Communicate how and why each part of the plan was designed.
Solving the challenges of compensation design is an ongoing process. Companies that invest in plan transparency, technology, and alignment between business goals and sales incentives tend to perform better and experience fewer disputes.
By addressing these common pitfalls, you can turn your commission structure into a strategic lever for growth - not a source of frustration.
Built for modern sales teams, Bentega simplifies complex commission plans and aligns incentives with your business strategy.