WW Watson Wyatt Worldwide

WASHINGTON, Sept. 14 /PRNewswire-FirstCall/ -- Corporate sales forces are anticipating better times ahead, as companies project higher revenues and sales goals for next year, according to a survey by Watson Wyatt, a leading global consulting firm. Additionally, the number of employers planning further sales force layoffs has declined sharply as the economy shows signs of improvement. The survey found that the vast majority (83 percent) of companies project revenue growth in 2010, with 43 percent of this group expecting revenues to increase by 6 percent or more. Also, slightly more than half (51 percent) expect higher sales goals and quotas for next year. Only 12 percent anticipate decreasing their sales staffing levels in the upcoming fiscal year (compared with 53 percent in February), and 16 percent actually anticipate increasing their sales force head count. Voluntary sales force turnover fell in 2009; 81 percent of respondents report less than 10 percent voluntary turnover, compared with 51 percent in February. Watson Wyatt's survey was conducted in August 2009 and includes responses from sales executives at 129 large companies. However, 60 percent think that sales force productivity and efficiency remains a significant concern, while 48 percent believe that sales force quota and goal setting is a concern. About one third (35 percent) also are concerned about sales force morale and motivation, while 40 percent are concerned with coaching and development. Less than half (47 percent) report being satisfied or very satisfied with their goal-setting processes. "Optimistic forecasts are good news for sales forces, which can look forward to fewer layoffs and potentially higher compensation," said John Bremen, global director of sales effectiveness and compensation at Watson Wyatt. "Yet with budgets still tight, many companies will look to get more out of their current salespeople for next year and to align incentives with changing business objectives." Alterations companies plan to make to their sales incentive plans in the next fiscal year include changing performance measures (60 percent), changing performance measure weightings (50 percent) and changing incentive formulae or mechanics (49 percent). Twenty-eight percent also expect to change their pay mix. Even in the current economy, the large majority of companies (86 percent) are able to identify their top performers, and 79 percent report that the top earners mirror the top performers, indicating a strong pay-for-performance orientation. "Although the outlook for sales forces seems to be improving, there are still bumps ahead in the road to recovery," said Joe Clarkson, U.S. practice leader for sales effectiveness and compensation at Watson Wyatt. "As companies move forward, it will be critical to motivate, coach and focus their sales forces to be more productive. Companies have the resources at their fingertips to accomplish what they need to -- now they need to marshal those resources and position themselves for the long run." Other findings include: -- The look backwards reflects a difficult 2009. Compared to this time last year, 34 percent have decreased sales force goals and quotas. Despite this, 57 percent still reported decreased sales force performance relative to plan. -- Nearly two-thirds of companies (65 percent) are managing their compensation cost of sales to below 4 percent of total sales. -- Companies continue to manage sales compensation on a global basis with local customization. For the 64 percent of companies that have sales incentive plans in other countries, most determine program eligibility (59 percent) and design (60 percent) globally, but pay levels (79 percent), sales goals (73 percent) and pay mix (68 percent) on a local basis. -- Almost half (46 percent) offer stock-based compensation to their sales forces. For more information, please visit http://www.watsonwyatt.com/salescompreport About Watson Wyatt Watson Wyatt (NYSE:WWNASDAQ:WW) is the trusted business partner to the world's leading organizations on people and financial issues. The firm's global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,700 associates in 33 countries and is located on the Web at http://www.watsonwyatt.com/. DATASOURCE: Watson Wyatt CONTACT: Ed Emerman for Watson Wyatt, +1-609-275-5162, , or Steve Arnoff of Watson Wyatt, +1-703-258-7634, Web Site: http://www.watsonwyatt.com/

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