2015 National Sales Compensation SurveyNational Wage & Salary Survey 2015 National Sales Compensation Survey An Employer Associations of America (EAA) Sponsored Survey, coordinated

National surveys produced by the EAA include:

National Business Trends Survey National Executive Compensation Survey National IT & Engineering Compensation Survey National Policies & Benefits Survey National Sales Compensation Survey National Wage & Salary Survey

2015 National Sales Compensation Survey

An Employer Associations of America (EAA) Sponsored Survey, coordinated by MRA – The Management Association in cooperation with 11 associations nationwide.

Published: November 2015 Next Publication: November 2016

Confidential Survey Report

This survey is provided with the understanding that the information will:

remain strictly confidential be restricted to authorized personnel only not be used in collective bargaining or grievance proceedings protect, completely, organizational identity

© 2015 Employer Associations of America (EAA): All rights reserved. This survey i s provided to th e re cipient t o u se a s an internal compen sation resource. Quotation from, or reproduction of, any part of the material contained in this surve y, in any fo rm or by a ny other mea ns (i ncluding use within consulting and/or fee-for-service work), without prior permission in writing from EAA or a survey co-sponsor named herein is prohibited.

© 2015 Employer Associations of America (EAA)

Use of Employer Associations of America (EAA) Surveys

The Employer Associations of America (EAA) conducts and compiles annual surveys solely to assist management in determining relevant wages, salaries, benefits, and practices. The survey results are enhanced when used in conjunction with other sources of information.

Surveys provide a valuable tool for use in determining how an organization’s pay structure relates to those in a given area. Survey users should not use the data as absolute compensation standards. Many factors, such as changes in the mix of participating organizations or the level of employment in the community, can affect the data and the results. Please exercise care when utilizing survey data. Specific results should be examined in the context of overall survey findings and the general economic situation prevailing at the time the data were gathered.

Policy Statement

Association surveys are most effect ively used when employed as a gu ide for management together w ith other dat a to determine the orga nization's position and its alternatives. This also can be used in advance of actual bargaining and as a reference during bargaining but remove d from the actual bargaining sessions. Since this survey is confidential, it is suggest ed that no direct reference be made to it in bargaining or in discussions with employees. There is little to gain and much to lose by using or referring to this survey data directly in bargaining. Both legal and practical considerations are involved.

All Rights Reserved Copyright 2015 Employer Associations of America

This survey is for the exclusive use of the recipient. Quotation from, or reproduction of, any part of the material contained in this survey, in any form or by any means without prior permission in writing from Employer A ssociations of Ameri ca i s prohibited. All que stions a bout o r requests to rep roduce th e information i n this survey sh ould be di rected to: M RA – Th e M anagement Asso ciation, Survey De partment, N19W24400 Ri verwood Drive, Wau kesha, WI 5 3188, (2 62) 6 96-3508, [email protected]

© 2015 Employer Associations of America (EAA)

Table of Contents Page Introduction .......................................................................................................... i Participating Employer Associations .............................................................. ii Profile of Participating Companies ................................................................. iv Industry Breakouts ......................................................................................... v U.S. Region Map ............................................................................................ vi Survey Methodology, Analyzing the Data & Statistical Parameters ............... vii Definitions of Survey Terms ........................................................................... viii Variances in Compensation Strategies and Survey Cycles ........................... ix National Participant List – Companies ............................................................... x PART I: POSITION SUMMARY REPORTS

Sales Management Positions Job Code

5 Top Sales & Marketing Executive Combined Compensation Type ....................................... 1 Base Salary Only ............................................................. 3 Base Salary plus Variable ................................................ 5 Variable Pay Only (insufficient data reported) ................. - 10 Top Sales Executive Combined Compensation Type ....................................... 7 Base Salary Only ............................................................. 9 Base Salary plus Variable ................................................ 11 Variable Pay Only (insufficient data reported) ................. - 20 Top International Sales Executive Combined Compensation Type ....................................... 13 Base Salary Only ............................................................. 15 Base Salary plus Variable ................................................ 17 Variable Pay Only (insufficient data reported) ................. - 30 General Sales Manager Combined Compensation Type ....................................... 19 Base Salary Only ............................................................. 21 Base Salary plus Variable ................................................ 23 Variable Pay Only (insufficient data reported) ................. - 50 Sales Manager Combined Compensation Type ....................................... 25 Base Salary Only ............................................................. 27 Base Salary plus Variable ................................................ 29 Variable Pay Only (insufficient data reported) ................. - 70 Sales Trainer Combined Compensation Type ....................................... 31 Base Salary Only ............................................................. 33 Base Salary plus Variable ................................................ 35 Variable Pay Only (insufficient data reported) ................. -

© 2015 Employer Associations of America (EAA)

Table of Contents (continued)

Outside Sales Positions Job Code Page

110 National Accounts Manager Combined Compensation Type ....................................... 37 Base Salary Only ............................................................. 39 Base Salary plus Variable ................................................ 41 Variable Pay Only (insufficient data reported) ................. - 125 International Sales Representative / Account Executive Combined Compensation Type ....................................... 43 Base Salary Only ............................................................. 45 Base Salary plus Variable ................................................ 47 Variable Pay Only (insufficient data reported) ................. - 130 Senior Outside Sales Representative / Account Executive Combined Compensation Type ....................................... 49 Base Salary Only ............................................................. 51 Base Salary plus Variable ................................................ 53 Variable Pay Only ............................................................ 55 150 Outside Sales Representative / Account Executive Combined Compensation Type ....................................... 57 Base Salary Only ............................................................. 59 Base Salary plus Variable ................................................ 61 Variable Pay Only ............................................................ 63 160 Junior Outside Sales Representative Combined Compensation Type ....................................... 65 Base Salary Only ............................................................. 67 Base Salary plus Variable ................................................ 69 Variable Pay Only (insufficient data reported) ................. -

Inside Sales Positions 200 Inside Sales Representative Combined Compensation Type ....................................... 71 Base Salary Only ............................................................. 73 Base Salary plus Variable ................................................ 75 Variable Pay Only (insufficient data reported) ................. -

205 Senior Inside Sales Representative Combined Compensation Type ....................................... 77 Base Salary Only ............................................................. 79 Base Salary plus Variable ................................................ 81 Variable Pay Only (insufficient data reported) ................. - 210 Order Processing Supervisor Combined Compensation Type ....................................... 83 Base Salary Only ............................................................. 85 Base Salary plus Variable ................................................ 87 Variable Pay Only (insufficient data reported) ................. -

© 2015 Employer Associations of America (EAA)

Table of Contents (continued)

Route Sales Position Job Code Page

360 Route Sales Representative Combined Compensation Type ....................................... 89 Base Salary Only ............................................................. 91 Base Salary plus Variable ................................................ 93 Variable Pay Only (insufficient data reported) ................. -

PART II: INDEPENDENT SALES REPS (selected information) ....................... 95

2015 Employer Associations of America (EAA) i

Introduction

The National Sales Compensation Survey focuses solely on sales professionals and the unique ways organizations use to compensate these individuals. This survey reports on data collected for positions in sales management, outside and inside sales, and route sales. Compensation data for each position are reported across four categories:

Combined Compensation - all compensation paid for all incumbents reported Base Salary Only - no incentive program yielding variable pay Base Salary Plus Variable - pay programs that include base salary plus incentive Variable Pay Only - all compensation is variable or incentive-based; no base pay

Developing a compensation plan for sales professionals is often challenging. There are many factors to consider, not the least of which is base pay amount (stability) versus variable pay (incentive). These results allow sur vey users to compare strategies. Be sure to read the sectio n on Variances in Compensation Strategies and Survey Cycles on page ix for additional factors to consider in reviewing the data and setting a compensation strategy for sales positions.

Survey Features:

817 companies reporting as 1,574 locations 9,742 rates reported Fifteen positions spanning a full sales force from executive to inside sales Salary reports show base pay, variable pay, and total compensation Compensation Strategies (three types of strategies, plus Combined Compensation which

summarizes all three types) Gross Sales Volume (four breakouts) Industry Types (16 breakouts) Regions (6 breakouts) Associations (15 breakouts)

2015 Employer Associations of America (EAA) ii

Participating Employer Associations

This survey was coordinated and sponsored with the cooperation of the following associations:

American Society of Employers Livonia, MI www.aseonline.org

Jason Rowe [email protected]

248.223.8053

Archbright Seattle, WA www.wa-emp.com

Whittney Dideon [email protected]

206.664.7248

Cascade Employers Association Salem, OR www.cascadeemployers.com

Carey Klosterman [email protected]

503.585.4320

Employers Assoc. Forum, Inc. Longwood, FL www.eafinc.org

Christine Crews [email protected]

407.260.6550

Employers Association of the NorthEast Agawam, MA www.eane.org

Mark Adams [email protected]

877.662.6444

Employers Resource Association Cincinnati, OH www.hrxperts.org

Jeff Lucas [email protected]

513.679.4120

ERC Highland Heights, OH www.ercnet.org

Margaret Brinich [email protected]

440.684.9700

Management Association Downers Grove, IL www.hrsource.org

Kristy Williams [email protected]

800.448.4584

MidAtlantic Employers’ Association King of Prussia, PA www.meainfo.org

Kay Dutton [email protected]

800.662.6238

Mountain States Employers Council Denver, CO www.msec.org

Sue Wolf [email protected]

303.223.5344

2015 Employer Associations of America (EAA) iii

Participating Employer Associations (continued)

MRA–The Management Association (Coordinating Association) Moline & Palatine, IL; Plymouth, MN; Waukesha, WI www.mranet.org

Kelly Greinke [email protected]

262.696.3508

The Employers Association Charlotte, NC www.employersassoc.com

Stephanie Oberg [email protected]

704.522.8011

Please refer to the association nearest you for additional information regarding this survey.

2015 Employer Associations of America (EAA) iv

Profile of Participating Companies

The effective date of the data is July 2015, and the publication date is November 2015.

Total Responses (A list of participating companies can be found on pages x - xvi)

817 companies reporting as 1,574 locations 15 selected occupations 9,742 employees

Primary Customer Type (To whom the salesperson sells. The number in parentheses represents the number of sales reps, not companies)

Consumer (946 sales reps) Distributors / Wholesalers (2,122 sales reps) Retailers (420 sales reps) Industry (6,254 sales reps)

Geographic Region (companies reported in multiple locations; a map of the U.S. regions can be found on page vi)

Great Lakes (655 organizations reporting on 6,001 employees) Pacific (217 organizations reporting on 726 employees) Northeast (205 organizations reporting on 969 employees) Mountain (113 organizations reporting on 429 employees) Southeast (213 organizations reporting on 1,016 employees) Central (171 organizations reporting on 601employees)

Association Breakouts (includes all data for association, regardless of geographic location of respondents)

American Society of Employers (MI) (159 companies) Archbright (WA) (9 companies) Cascade Employers Association (OR) (77 companies) Employers Association Forum, Inc. (FL) (2 companies) Employers Association of the NorthEast (CT & MA) (16 companies) Employers Resource Association (OH) (100 companies) ERC (OH) (30 companies) Management Association (IL) (32 companies) MidAtlantic Employers’ Association (PA) (18 companies) Mountain States Employers Council (CO) (18 companies) MRA – The Management Association (IA/W. IL) (5 companies) MRA – The Management Association (IL) (19 companies) MRA – The Management Association (MN) (112 companies) MRA – The Management Association (WI) (196 companies) The Employers Association (NC) (24 companies)

Gross Sales Volume

$0.0 to 24.9 Million (332 companies) $25.0 to 99.9 Million (311 companies) $100.0 to 249.9 Million (91 companies) $250.0 Million + (78 companies)

2015 Employer Associations of America (EAA) v

Industry Breakouts

This list reflects the industry breakouts available for this survey.

Category Name

Number of Companies

Natural Resources / Mining 7 Utilities 3 Construction 18 Non-Durable Goods Manufacturing 125 Durable Goods Manufacturing 384 Retail Trade 23 Wholesale Trade 71 Transportation / Warehousing 9 Information (Communication and Broadcasting) 6 Financial Activities 14 Professional / Business Services 61 Education Services 3 Health Services 12 Social Services 4 Leisure / Hospitality Services 3 Services, not elsewhere classified 74

2015 Employer Associations of America (EAA) vii

Survey Methodology Online questionnaires were used to gather data for this survey. Telephone and e-mail verifications were made with the participants when data required clarification. Data that cannot be verified or are not a good match are not used. Fifteen sale s occupatio ns were surveyed using job descriptions to ensure the accuracy of reporting. Participants were asked to base their job match on the benchmark job descriptio n, not on job title. The company’s po sition and the benchmark description should be at least 70% similar. Companies were asked to report only on full-time Sales Personnel who work out of a local office, agency or distributor and are on the company’s payroll as follows:

Salary data on an annual basis in effect as of July 2015 Variable (bonus and commission) earnings on an annual basis, using the company’s

last fiscal or calendar year to obtain a full 12-month period

All compensation data are collected for each incumbent (rather than an average for all incumbents in that position). Although only full-time Sales Personnel who are on the company’s payroll were included in the compensation section, a special section gathers information on the use of Independent Sales Reps and compensation. Dominance Diffusion: When one or more reporting organizations dominate the statistic beyond the dominance threshold, a sophisticated algorithm has been used to adjust the statistic. This reduces the influence of the dominating organization’s data below the dominance threshold. The value is shown in italics.

Analyzing the Data As with all things statistical, survey data is subject to both the quality of data inputs and the timing of the survey process. The following points should be considered when analyzing survey data.

Skewing of the data – In all surveys, there can be skewing of the data. By comparing averages to medians, skewing is easy to find. When an average is significantly greater than the corresponding median, the data may be skewed high (or vice versa). In other words, for that particular breakout, there are data that are significantly above the next higher rate (and vice versa). Aging survey data – All survey data should be appropriately aged. Data collected for surveys are time-sensitive, reflecting a specific point or date in time. Therefore, to accurately reflect such data, all pay rates should be aged according to relevant adjustment rates.

Statistical Parameters

Any job/compensation strategy where fewer than five companies reported data is excluded from the report.

Breakout lines of data for jobs that do not have at least five organizations reporting are indicated by a dash (-).

Extre mes (10th and 90th percentiles) are only shown when a minimum of ten companies reported.

2015 Employer Associations of America (EAA) viii

Definitions of Survey Terms for Compensation

These are the definitions for the headings that appear at the top of the Position Summary Reports on pages 1–94. (Job No.) Job Title (1) Job Description (2)

# of Orgs

# of Emp

Base Pay (5) Variable Pay (11)

Total Compensation (14) Eligible Actual

Un-Wtd Avg

Wtd Avg P25 Median P75

# of Orgs

# of Emp

# of Orgs

# of Emp

Wtd Annual

Avg

Un-Wtd Avg

Wtd Avg P10 P25 Median P75 P90

(3) (4) (6) (7) (8) (9) (10) (12) (13) (15) (16) (17) (8) (9) (10) (18)

(1) Job Number and Job Title: The position’s number, as grouped

by function, and the title of the occupation. (2) Job Description: Benchmark summary of skill and

responsibility level performed in a job. (3) # of Orgs: Number of organizations reporting on the position

surveyed. (4) # of Emp: Number of incumbents (employees) reported in the

position surveyed. (5) Base Pay: The actual base compensation paid to an individual;

based on salary in effect as of July 2015. (6) Un-Wtd Avg Base: The simple average of the organizations’

straight salary and/or base salary data; calculated as the sum of all straight salaries or base salaries in a category divided by the number of organizations.

(7) Wtd Avg Base: The simple average of the employees’ straight salary and/or base salary data; calculated as the sum of all straight salaries or base salaries in a category divided by the number of employees.

Interquartile Ranges (8, 9, 10): Selected ranges based on pay rates, as rates are individually ranked from lowest to highest by salary reported.

(8) P25: The first quartile; also referred to as the 25th percentile. This is the rate in a ranked order (or distribution) of incumbent rates (low to high) equal to or greater than lowest 25% of the total rates.

(9) Median: The 50th Percentile; the rate at which 50% of rates are above and 50% are below; the middle rate in the distribution of rates (low to high).

(10) P75: The third quartile; also referred to as the 75th percentile. This is the rate in a ranked order (or distribution) of incumbent rates (low to high) equal to or greater than lowest 75% of the total rates.

(11) Variable Pay: Commission or bonus earnings based on sales production paid to incumbents; summarized on an annual basis; can be reported as paid for the last fiscal or calendar year.

(12) Eligible, for Variable Pay: Number of organizations and number of employees eligible to receive variable pay.

(13) Actual, receiving Variable Pay: Number of organizations and number of employees receiving variable pay.

(14) Total Compensation (TC): Sum of all cash compensation paid including annual salary, annual commission, and annual bonus; commission and bonus compensation based on the company’s last fiscal or calendar year in order to have a full 12-month period.

(15) Un-Wtd Avg TC: Simple average of the organizations’ total cash compensation (including those that did not receive commission and/or bonus compensation) and then dividing by the number of organizations reported in the position.

(16) Wtd Avg TC: The simple average of employees’ total annual cash compensation (including base salary, bonus and/or commission) based on the number of employees in the position.

(17) P10: The 10th percentile; the rate at which 10% of incumbents are at or below and 90% are at or above.

(18) P90: The 90th percentile; the rate at which 90% of incumbents are at or below and 10% are at or above.

2015 Employer Associations of America (EAA) ix

Definitions of Survey Terms for Compensation (continued)

The data are presented in the following configurations:

Combined compensation shows all data no matter what type of pay approach is used Base salary only is used for those with no incentive programs Variable pay only is used for those with no base pay Base salary plus variable combines all incentives as variable pay instead of bonus and

commission The following terms are found in the survey profile and/or compensation data:

Primary Customer Types: Refers to the customer to whom the salesperson primarily sells. Some companies may have more than one type of customer.

o Industry o Distributors / Wholesalers o Retailers o Consumer

Gross Sales Volume: Gross sales volume includes sales / revenues or net assets (for

financial and insurance companies) for the last fiscal year, of all units encompassed by the unit for which compensation data were reported

Regions: see the US Region Map on page vi.

Variances in Compensation Strategies and Survey Cycles

Sales compensation plans may or may not have a cap limiting compensation. Occasionally, the absence of a cap, coupled with one or more significant sales performance events, will push total compensation to high six-figure levels. It is important to note that these high rates of pay do occur in the market. These cases will usually be observed in the P90 measures, but may also impact weighted and unweighted averages. In smaller samples their impact can be pronounced. As data are combined with larger samples, the visible impact decreases in magnitude. We suggest using Q1, median, and Q3 of total compensation in cases where data are skewed. When using data in this survey, it is important to note that companies vary significantly in how they compensate direct sales staff. Some rely heavily on commissions while others use greater amounts of base or bonus. Thus, the most relevant survey analysis for direct sales staff focuses on total compensation. Total compensation is generally a less volatile measure of the market for direct sales.

Organizations tend to place greater emphasis on base pay for top management and lower-level support jobs. Thus, both base pay and total compensation are important. Jobs with a high base component in the mix are less likely to vary in unexpected ways from one survey cycle to the next. When making year-to-year comparisons, users of the survey may see some changes due to shifts in the demographic profile.

2015 NATIONAL SALES COMPENSATION SURVEY

# of Orgs

# of Emp

# of Orgs

# of Emp

Wtd Annual Avg

Total Responses 249 263 - - - - - - - - - - $200,421 $199,760 $100,000 $140,000 $186,336 $236,705 $300,031-2 - - - - - - - - - - - - - - - -

Org Sales Volume -1 - - - - - - - - - - - - - - - -

$0.0 to $24.9 Million 98 100 - - - - - - - - - - $167,210 $166,085 $90,091 $116,338 $147,925 $204,838 $259,778

$25.0 to $99.9 Million 106 110 - - - - - - - - - - $216,998 $217,868 $121,457 $158,250 $201,391 $253,036 $319,935

$100.0 to $ $249.9 Million 26 33 - - - - - - - - - - $234,851 $222,177 $151,898 $168,180 $202,470 $247,555 $310,545

$250.0 Million + 17 18 - - - - - - - - - - $235,960 $235,114 $128,890 $181,000 $225,745 $280,556 $374,556-2 - - - - - - - - - - - - - - - -

Region -1 - - - - - - - - - - - - - - - -

Great Lakes 185 197 - - - - - - - - - - $204,961 $203,905 $115,254 $147,215 $186,336 $243,011 $302,396

Pacific 28 29 - - - - - - - - - - $173,654 $171,063 $66,950 $96,264 $150,000 $209,235 $320,000

Northeast 17 17 - - - - - - - - - - $173,651 $173,651 $99,224 $134,111 $165,360 $214,064 $263,901

Mountain 9 9 - - - - - - - - - - $235,101 $235,101 - $165,650 $240,000 $314,233 -

Southeast 8 8 - - - - - - - - - - $211,997 $211,997 - $155,052 $222,483 $233,876 -

Central 3 3 - - - - - - - - - - - - - - - - --2 - - - - - - - - - - - - - - - -

Association -1 - - - - - - - - - - - - - - - -

American Society of Employers (MI) 37 39 - - - - - - - - - - $207,053 $204,288 $120,000 $133,047 $192,402 $247,638 $300,000

Archbright (WA) 4 4 - - - - - - - - - - - - - - - - -

Cascade Employers Association (OR) 22 23 - - - - - - - - - - $135,694 $134,078 $65,780 $91,971 $130,000 $185,000 $201,135

Employers Assoc. of the NE (CT & MA) 7 7 - - - - - - - - - - $157,294 $157,294 - $115,000 $159,000 $212,128 -

Employers Resource Association (OH) 39 40 - - - - - - - - - - $211,336 $212,472 $105,249 $146,944 $191,315 $234,801 $312,466

Employers Resource Council (OH) 12 12 - - - - - - - - - - $223,264 $223,264 $155,558 $173,658 $200,000 $300,887 $332,468

Management Association (IL) 7 7 - - - - - - - - - - $209,230 $209,230 - $143,000 $175,000 $300,000 -

MidAtlantic Employers Assoc. (PA) 3 3 - - - - - - - - - - - - - - - - -

Mtn States Employers Council (CO) 7 7 - - - - - - - - - - $254,945 $254,945 - $216,000 $251,000 $365,965 -

MRA - The Mgmt Assoc. (IL) 8 8 - - - - - - - - - - $222,332 $222,332 - $142,000 $211,456 $233,085 -

MRA - The Mgmt Assoc. (MN) 35 41 - - - - - - - - - - $195,172 $194,315 $112,625 $144,187 $180,920 $231,039 $270,760

MRA - The Mgmt Assoc. (WI) 63 67 - - - - - - - - - - $199,705 $200,238 $95,210 $140,346 $189,626 $252,481 $287,313

The Employers Association (NC) 5 5 - - - - - - - - - - $231,898 $231,898 - $183,810 $222,601 $284,636 -

(5) TOP SALES & MARKETING EXECUTIVE

Top sales and marketing executive where the functions are combined under one leader. Responsible for the overall management and direction of the sales and marketing functions and the entire range of market research and analysis, marketing programs, customer relations, advertising, sales planning and development, sales promotion, sales force development, sales compensation, and sales activities of the organizational unit. Formulates, recommends and implements policies and programs in the areas of forecasting, sales, pricing, marketing and product or service acceptance research, and related activities. This is normally a single incumbent job.

Combined Compensation Type

# of Orgs

# of Emp Un-Wtd Avg Wtd Avg P25 Median P75

Base Pay Variable Pay

P2510thUn-Wtd

Avg Wtd Avg Median P75 90th

Total CompensationEligible Actual

Italics - Dominance Diffused 1 © 2015 Employer Associations of America (EAA)