An insurance company, which markets supplemental insurance directly to consumers through a direct sales force of 5,000 agents in 14 countries, faced a challenge in aligning sales force compensation with desired sales force actions. As key growth indicators, such as new policies, units sold, and annual premium per producer, were all declining dramatically, sales and sales management morale reached an all-time low, leading to an increase in agent-level turnover that surpassed any previous records in the company's 85-year history.

Our team conducted a comprehensive review of the global sales structure and compensation models. We audited selected sales activities across a range of performance levels and agent/manager roles in the three largest markets, and subsequently redesigned the sales representative and manager compensation plan to drive desired behaviors. In addition, we provided an interim plan that defined new performance criteria at multiple levels to drive short-term gains in each major market. Finally, we modeled the potential costs and benefits of the recommended plan across a variety of performance levels.

We identified opportunities to drive annual premium growth by over 10% and implemented a new sales compensation plan that generated 11% savings at identical levels of production vs. current while paying high performers more. The client moved towards their goal of establishing a performance-based sales culture centered on accountability for activity and results, supported by a compensation plan that now aligns with activity and actions.