Incentive plans launch with energy and optimism. Leadership believes they will sharpen focus, motivate employees, and drive performance. HR builds the plan, communicates the metrics, trains managers, and prepares year-one materials.
When Job Titles Don’t Match Reality and Pay Doesn’t Make Sense Anymore
Paying executives is a balancing act. If you underpay, you risk losing key leadership. If you overpay or structure compensation poorly, you invite resentment, waste resources, and misaligned priorities.
It’s a tough time to be in sales no matter what your business. Whether you’re in B2B or B2C sales, people are just not as willing to open their checkbooks these days. That means it’s more difficult to close a sale, and it can be more difficult to keep your sales force motivated to go out and sell. But don’t forget: without a sales team, you won’t be in business for long.
Get your 2026 sales incentive plan ready. Learn how to design, align, and communicate a plan that motivates teams and drives results.
It’s a scenario more common than most companies realize: a new hire walks in the door with a higher salary than a 10-year veteran doing the same job. The numbers may be different but the result is the same: frustration, disengagement, and ultimately, turnover.
Pay transparency has quickly become one of the most talked-about (and misunderstood) topics in compensation. Many business owners and HR leaders worry that being open about pay means inviting conflict or losing control of the conversation.
Business leaders often ask, “Do we need a bonus plan?” But the more revealing question is: What are you trying to drive?
Incentives can be a powerful tool, if they’re used well. They can focus effort, reward progress, and reinforce priorities. But when poorly designed, they become noise: misunderstood by employees, misaligned with goals, and more frustrating than motivating.
Turnover is expensive and disruptive. Especially for small and mid-sized companies where each person carries significant weight. But when a key team member walks away, how do you know if pay was part of the reason?
Often, compensation doesn’t top the exit interview list, but it lingers beneath the surface. Subtle imbalances can erode loyalty over time, especially when employees start comparing notes or offers.
For many business owners and HR leaders, salary increases feel more like guesswork than strategy, especially when inflation, shifting labor markets, and rising employee expectations all collide. Should you apply across-the-board raises? Prioritize performance? Adjust for inflation? And how do you balance fairness with financial discipline? The answer isn’t a formula. It’s a mindset shift.
