Wait.. incentives drive behavior?

Of course they do — but are you using them right?

There’s a motto in Sales: “Incentives drive behavior.” Everyone nods when they hear it — but not everyone acts on it.

The truth? A well-designed comp plan can supercharge your team’s performance without blowing your budget. But a poorly designed one? It can open up loopholes, misalign your team, and even drive away top talent.

Let’s break down what actually makes a comp plan work — for your team and your business.

📣📣 Or try our Free Comp Plan Designer here

🎯 Start with Strategy, Not Guesswork

A lot of teams build their comp plans based on vibes. What’s “standard.” What their competitors are doing. What sounds fair.

But your plan should start with your strategy. Ask yourself:

• What are our top business goals?
• What behaviors will help us hit them?
• What incentives would reinforce those behaviors?

Then — and only then — do you layer on the mechanics.

📄 Keep It Simple, Seriously

If your team can’t explain how they get paid, the plan’s not working.

Comp letters should be one-pagers, not novellas. Everyone should know: → What’s expected → What they get for doing it → How to earn more

If it’s a mystery, it won’t motivate.

🚀 Quotas: Not Optional

We’ve said it before, but it bears repeating: quotas matter.

They give direction, create urgency, and help your team track progress. Sure, they can be tricky to set — but skipping them entirely in favor of flat rates is a missed opportunity.

(We’ll go deeper on quota-setting in another post.)

💥 Budget for SPIFs and Strategic Nudges

Your business changes — and your comp plan shouldn’t need a total overhaul every time.

That’s where SPIFs (Special Performance Incentive Funds) come in. Contests. Spot bonuses. Quarterly focus incentives. These give you flexibility without moving the goalposts.

Set aside a budget for dynamic incentives — your future self will thank you.

🏆 Culture-First Incentives Win

Not everyone is wired the same. Some care about money. Some want career growth. Some value public recognition or equity in the business.

Your incentive plan should reflect your culture:

• Want to reward collaboration? Introduce peer bonuses.
• Want to promote meritocracy? Be transparent with attainment and stack rankings.
• Want to invest in long-term engagement? Offer clear promotion paths or stock options.

Cash is great — but it’s not everything.

🛠 Ready to Design (or Rethink) Your Comp Plan?

Whether you’re building your first plan or wondering if your current one still fits your goals — we’ve got you.

📣Try our free Comp Plan DesignerComp Plan Designer — it uses AI to walk you through a few key decisions. Want expert eyes on it? Reach out to us at easycomp

We’re constantly updating the tool, so let us know what works — and what doesn’t.

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