New study from Anaplan finds that 98% of UK businesses are delivering compensation planning packages to sales reps after the financial year has already begun
Research commissioned by Anaplan reveals companies are losing valued sales executives as they are taking too long to confirm their targets and commission plans. The study, which questioned C-level and senior decision makers in the sales function in the UK, found that over a quarter of respondents agreed that the quality of their quota allocation is cited as the main reason behind a sales representatives’ decision to quit the company.
The survey also reveals that, while 76 per cent of businesses claim to start the sales planning process two months before the end of the financial year, a staggering 98 per cent of sales compensation plans are delivered after the year has already begun. In fact, over half of businesses (54 per cent) admit to delivering plans at least a month late, a fact that undoubtedly plays a key part in the dissatisfaction of sales teams.
The findings signify a serious issue – especially as over two thirds of organisations (68 per cent) believe the average cost to replace a sales rep to could cost as much as £24,000.
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Ian Stone, Managing Director UK & Ireland at Anaplan commented: “More than any other employees, sales people thrive on targets. Without them, they can be rudderless and ineffective – so it’s imperative that companies provide them with clear guidance at the start of each financial year. The delays aren’t just costing companies valued sales executives – they could be costing millions in lost business, right at the start of the year. Businesses must find a way to ensure sales plans are worked out and disseminated faster.”
Anaplan’s cloud-based planning and execution platform gives managers a means to build, and collaborate on, sophisticated models covering everything from P&L planning to sales quotas. To download the report, please visit: www.anaplan.com/sirius-decisions-survey-2014