Are You Underpaying Your Sales Team? What the Market Says

🚀 How to Tell If Your Compensation Plan Is Helping or Hurting Your Hiring & Retention

When top sales reps leave for a competitor or refuse your job offers, many leaders assume it’s about a better paycheck.

💡 The truth? Compensation is about more than just salary—it’s about opportunity.

✔️ If your pay isn’t competitive, you won’t attract top performers.
✔️ If your commission structure is unclear, reps won’t stay.
✔️ If your comp plan doesn’t match today’s market, you’ll lose talent to competitors who “get it.”

So, how do you know if you’re underpaying your sales team? Let’s dive into what the market says, where companies go wrong, and how to fix it.

Step 1: Compare Your Compensation to Industry Benchmarks

🚨 If your pay structure is outdated, you’re already behind.

💡 How to Assess Competitiveness:
✅ Research industry compensation reports for base salaries, commissions, and bonuses.
✅ Compare your total comp package (not just salary) to top competitors.
✅ Look at what’s driving salespeople’s decisions today—pay, benefits, flexibility, culture.

📌 Pro Tip: Use compensation surveys from TTISI, LinkedIn Salary Insights, or industry-specific reports to gauge market rates.

Step 2: Evaluate If Your Commission Plan Helps or Hurts Retention

🚨 Many companies drive away top talent with commission structures that don’t work.

💡 Red Flags That Kill Sales Rep Motivation:
❌ Commission Caps – Nothing kills motivation faster than a hard earnings ceiling.
❌ Unrealistic Quotas – If only 10% of reps hit quota, your plan is broken.
❌ Delayed Payouts – Reps need fast commission cycles, not 90-day waiting periods.

📌 Action Step: Simplify your commission structure to be easy to understand and rewarding for high performers.

Step 3: Assess Whether Your Salespeople Can Actually Earn What You Promise

🚨 It’s not about what you offer—it’s about what’s realistically attainable.

💡 Sales reps ask themselves:
✔️ Can I hit my OTE (On-Target Earnings), or is it unrealistic?
✔️ Will the company support my success with leads, pricing, and resources?
✔️ Am I limited by inventory, service issues, or operational bottlenecks?

📌 Pro Tip: If your top reps aren’t earning what you advertised, your comp plan may be costing you talent.

Step 4: Consider the “Total Compensation Package” (It’s More Than Money)

🚨 Salary alone isn’t the deciding factor—total comp matters.

💡 What Today’s Sales Reps Value:
✅ Base salary + commission structure that rewards top performance.
✅ Bonuses for exceeding goals or bringing in high-margin business.
✅ Non-monetary perks (flexibility, career growth, leadership development).

📌 Action Step: Benchmark your total comp package against top competitors—not just salary alone.

Step 5: Adjust Your Compensation Plan to Match Market Demands

🚨 Comp plans should evolve to attract and retain top talent.

💡 How to Keep Your Comp Plan Competitive:
✅ Conduct an annual compensation review based on market trends.
✅ Ask current and former employees for feedback on pay structure.
✅ Test new performance-based incentives to boost engagement.

📌 Pro Tip: A strong comp plan should motivate high performers while protecting company profitability.

The Bottom Line: Pay Your Salespeople What They’re Worth—or Lose Them

💡 If your sales team is underpaid compared to market rates, you’re putting your company at risk.

✔️ Assess compensation benchmarks regularly.
✔️ Fix commission structures that demotivate top talent.
✔️ Make sure earnings potential is real—not just on paper.
✔️ Offer total compensation that goes beyond salary.

💡 Want to know if your sales comp plan is helping or hurting your business?
Get a compensation assessment to see where you stand.

✅ Need help structuring a competitive sales compensation plan?
📩 Schedule a consultation today at www.BuildingGurus.com