Type of work performed: Evaluation of the competitiveness and effectiveness of sales compensation and total reward strategy in attracting, retaining, and motivating key personnel
Industry of client: Travel/Tourism
Size of client: ~2,000 employees and ~$750 million in total revenues
Brief description of the client: High end retail business that offers luxury brands, exclusive merchandise, and a world class sales experience
What was the client trying to change, improve, and/or implement?
Compensation practices had not been updated for almost 20 years and there were increasing concerns about the level of compensation, the mix of variable vs. fixed compensation, and the design of the commission program
Why did the client decide to work with FutureSense (can be a little “sales-pitchy”)?
FutureSense is an attractive option for those who are looking for a different type of consulting experience. We are creatively thoughtful, highly responsive, and authentic in our approach. Since we are a smaller boutique firm, we have the ability to offer a level of service that is unmatched in our industry.
What was the FutureSense gameplan?
Three main phases:
1. Discovery, Data Analysis, & Philosophy –
a. Deep dive into client materials to understand current programs, interviews with key stakeholders, assessment of critical business challenges, and in-person retail experiences to observe the sales personnel
b. Market analysis of current programs to assess competitiveness
c. Create comprehensive compensation philosophy in tandem with organizational leadership’s vision for the future
2. Design of Future Programs – pending the outcome of Phase 1, this phase incudes a series of design ideations and in-depth modeling. Specific deliverables include a written final plan, financial impact modeling, and high-level implementation timeline
3. Implementation and Test Piloting New Programs – this phase would typically involve the following: detailed financial analysis & forecasting, written program policies and procedures, communications and change management, and additional staffing support (as needed)
What were the results – qualitative and quantitative (if applicable)?
Overview of Recommendations leading into Phase 2:
1. Overarching theme – shifting culture from individual to team focused and design reward programs to encourage & support teamwork
2. Recreate job hierarchy based on value to sales efforts to recognize competencies and experiences
3. Increase base rates to remain competitive in the marketplace (can adjust base commissions to help fund increase)
4. Change performance management program to “on/off” for salary adjustment purposes
5. Create “gainsharing” opportunity above target level that is self-funding
6. Pool spiffs to have all participate and share based on level and role multipliers
7. Recognize and reward service and loyalty and revisit ancillary benefits
**Check back in with us for an update upon completion of Phase 3**