Sales Compensation – Cyrille Meunier & Guillaume Pestier

A changing environment: digitalization and evolving sales processes

Cyrille and Guillaume first set the context: the sales environment has fundamentally changed. The acceleration of post-Covid digitalization, the evolution of B2B business models, and the increasing segmentation of sales roles (SDR, BDR, Account Executive, CSM) are transforming the role of the salesperson.

Result: 70% of salespeople believe their compensation system is not adapted to the market and 60% consider it unfair. Paradoxically, as soon as a change is mentioned, resistance appears because no salesperson believes their system will be changed to give them more!

From commission to bonus: a major shift

The study reveals a strong trend: the gradual shift from commission-based to bonus-based systems. Why this evolution? Because modern sales increasingly involve more stakeholders (marketing, SDR, customer success) and individual impact is diluted in a longer customer journey.

Commission remains directly linked to volume (the more I sell, the more I earn), while the bonus allows for the integration of several performance drivers: revenue, quality, customer satisfaction, teamwork. This evolution also allows for a better balance between fixed and variable compensation.

Clarity vs. simplicity: a critical challenge

Cyrille highlighted a fundamental distinction: what salespeople need is clarity, not necessarily simplicity. A simple system is not necessarily clear. For example, sharing a collective margin envelope is simple to understand but not very clear because one only knows their share at the end of the year.

Conversely, a clear system allows the salesperson to know in real-time: “if I do this, I will get that much”. This clarity may require a sophisticated structure, but it is essential for motivation and managerial steering.

The emergence of collective variable compensation

A surprising finding from the study: the share of collective variable compensation increased from 4% to 11% for salespeople and 16% for sales managers between 2019 and 2022. This evolution reflects modern reality: sales are no longer made alone, they are made as a team.

Gone are the days of the “TPMG” salesperson (All For Myself)! The collective dimension becomes essential because it corresponds to the expectations of new generations who want to join a collective, work in a team, and share common values.

Compensation: an attraction factor, not an engagement driver

Guillaume provided crucial insight: 86% of candidates say that compensation is a trigger to apply, but only 22% of offers mention salary! It’s an essential factor but not sufficient.

For engagement, compensation ranks 5th among motivational levers. The primary factors are people: the manager, the team, the work atmosphere. What drives engagement are the other factors, and primarily people.

Total compensation package and new benefits

Given evolving expectations, companies are increasingly thinking in terms of a total compensation package. Beyond salary, the benefits that make a difference today:

• Remote work (minimum 2 days per week expected)

• Vehicle/fuel allowance (crucial with inflation)

• Flexibility and autonomy for new generations

• CSR values and environmental impact

The traditional “low fixed, high variable, company car” no longer attracts young talent committed to CSR and comfortable with digital tools.

In a nutshell…

Here are the three major lessons to take away from this Masterclass:

• Evolve towards greater clarity: Shift from commission to bonuses to integrate multiple performance drivers while ensuring real-time visibility of earnings.

• Integrate the collective dimension: Develop team-based variable compensation to meet the new realities of collaborative sales and the expectations of younger generations.

• Think in terms of a total compensation package: Go beyond salary to offer remote work, flexibility, and values that align with the current expectations of sales talent.

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