How to Make Sales Incentives Work in Tough Times

When markets get challenging, many companies slash incentive programs first. But smart businesses know a well-designed sales compensation plan isn’t a cost — it’s a catalyst for performance, even in uncertain times.

The key is alignment. A strong plan ties individual effort directly to company goals, motivating sales teams to push in the same direction. It balances competitive base pay with performance incentives and, increasingly, long-term rewards that drive loyalty.

Too often, sales incentives are poorly structured or overly complex. This leads to confusion, demotivation, and sometimes even costly mistakes. Sales leaders and HR teams who invest in learning the principles of effective incentive design have a clear edge.

Earning the Certified Sales Compensation Expert credential from Aon Learning Center provides proven frameworks for building plans that balance fairness, simplicity, and impact. Participants learn how to benchmark pay, set realistic but challenging targets, and communicate plans clearly so sales teams stay focused and motivated.

In challenging markets, the right incentive plan can stabilize revenues and boost morale. It can also help retain top performers who might otherwise be tempted by offers from competitors. The bottom line: don’t pull back on smart sales compensation when times get tough — double down on doing it better.