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However, it’s important to note that the research on employee participation in goal setting is mixed, with other research finding that supervisor-set goals are more powerful than self-set goals (CIPD 2016).

You can download a graphic report of findings, a summary analysis of the trends or a short quiz that you can use to start productive goal-setting conversations in your organization.

Concept 1: Have a Laser-Focused Compensation Philosophy Before compensation targets and financial and non-financial metrics for incentive programs can be set, a compensation committee must adopt a compensation philosophy that drives the program’s overall structure.

Nearly 40% of respondents took one or more actions to address incentive plan goal-setting challenges, such as delaying the timing to finalize goals, widening performance ranges, and adding or increasing the emphasis on relative metrics.; ;Most respondents are not planning significant changes to incentive plan designs for 2026 or the short-term incentive (STI ) performance mix or long-term incentive (LTI) award vehicle mix.Most also have not made changes to equity grant practices in response to stock market volatility or proposed shareholder advisory group policy changes.; ;Among respondents with incentive cycles ending in 2025, most (roughly half for STI and 60% for LTI) do not currently anticipate the use of discretion, with one-third taking a “wait and see” approach.

The BOK represents the complete set of knowledge and skills required for professionals working in the sales compensation field.

The percentage of sales teams meeting the benchmark declined each year since 2017, reaching a low point in our most recent data set, as shown in Figure 1.

Working with management, boards have to sort through all of the noise — opinions, ideas and information — and make rational, informed decisions about how to set priorities, allocate resources and make investments.

Relatedly, we should understand that not everyone has the same set of preferences as to how and when they communicate.

Key Takeaways Setting a precedent.

Sales managers struggle to get quota setting right.