Executive, Employee, Sales Compensation Outlook 2010

January 4, 2010

Following are some of the significant challenges that Sibson Consulting sees in its 2010 outlook for executive, employee and sales force compensation:

  • Assessment of the damage to an organization because of restructuring and pay actions necessitated by the 2008-2009 economic downturn.
  • Dealing with tension within an organization between those who want to return to the good old days of pay practices and those who want to press the reset button and move to a real pay-for-performance mindset.
  • Within the context of a company's go-forward strategy, determining a realistic strategy for human resource and paymanagement.
  • Continuing to struggle with how to do employee pay for performance with small compensation budgets.
  • Focus by the compensation committee on the unassailability of its decisions and the compensation decision-making process.
  • Aligning sales pay structures with new business and sales strategies, and deciding how to pay top performers.
  • Keeping sales costs in line and moving more money out of fixed costs and into variable pay for the sales function.

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