The Operant Philosophy for Designing a
High-Performance VCS

Many companies view commission as an unavoidable cost of doing business. However, Operant knows that variable compensation is one of the most strategic expenditures a company makes each year. Those who share our philosophy will gain competitive advantage from an Operant-designed compensation system.

We build your variable compensation system (VCS) based on the following principles.

• Reward to produce specific and desired business development results.
• Simultaneously maximize company performance and the personal income of a sales representative in order to attract and retain true sales talent and to deter imposters.
• Pay above industry average for the company’s desired results, and below industry average for sub par results.
• Focus the sales reps actions to maximize the value of each transaction in order to maximize monthly, quarterly or annual business development results.
• The majority of compensation dollars earmarked for the sales force should be:
• For current performance and not for residuals from legacy performance.
• Variable in nature versus base salary.

By adhering to our philosophy we avoid building systems that lack a strategic focus and:

• Offer no competitive advantage (i.e., are simply industry standard)
  
• Pay the same commission for all transactions regardless of their value to the company.
• Have rewards distant from the results attained creating fuzzy associations for the sales reps.
• Reward results that are not optimal for the company.
• Aggregate transactions.