Comp Plan Overhaul: Aligning Payouts to Funnel Control

Overview

As our executive search firm evolved from a full-desk model to a multi-role sales structure, our compensation plan failed to keep up. Originally designed for full-desk generalists, the plan compensated only on closed placements, even for roles operating exclusively at the top or middle of the funnel.

The result: incentive misalignment, friction between roles, and escalating turnover. High-performing sourcers perceived compensation as inequitable despite driving revenue-generating volume. Activity across the funnel slowed as comp clarity eroded.

This case study outlines how I rebuilt our compensation system to match funnel-stage control, reinforce KPI-linked behavior, and support scale without losing fairness or visibility.

Pitch & Pilot

I made the case that our comp plan was suppressing performance in the very areas we needed to grow. Instead of measuring only outcomes, I proposed a KPI-based system that rewarded contribution by stage, with early roles incentivized on qualified volume and late-stage roles on closed revenue.

To win support, I modeled historical data across roles and revenue tiers, simulating payouts and comp exposure under multiple scenarios.

• Analyzed historical Salesforce activity and funnel data to quantify conversion rates by stage and map rep contributions to measurable KPIs
• Modeled payouts by role and quarter using historical data
• Facilitated alignment between leadership, recruiters, and sales on comp fairness, behavior incentives, and payout risk

Implementation

We launched the redesign in under 30 days. I built an internal Google Sheets-based engine to automate commissions using Salesforce-linked KPIs, conversion-weighted multipliers, and tiered accelerators.

Each role was compensated based on its measurable influence on revenue, not just bookings.

• Replaced flat commission with tiered, role-specific payout structures
• Created a transparent payout engine tied to Salesforce KPIs and forecast logic
• Rolled out supporting documentation and coached managers on payout logic and exception handling
• Defined role-specific KPI benchmarks and contribution tiers to drive consistency

Outcomes

• Increased placement volume as reps focused on leverage points within their role
• Improved morale and retention among top-of-funnel roles which were once undercompensated
• Unlocked growth from overlooked contributors by anchoring payouts to influence, not just outcomes
• Forecast accuracy improved through consistent input/output mapping and KPI traceability

Reflection

Comp plan design is behavior architecture more than it is a math equation. This system had to be fair enough to rebuild trust, specific enough to drive action, and flexible enough to scale.

By tying compensation to controllable KPIs, we gave managers coaching tools, gave reps clarity on what mattered, and gave leadership a forecasting engine grounded in real behavior.

This framework was later presented to 120+ search firm leaders ($350M+ combined revenue) and has since been adopted or adapted by several peers.

Key Takeaways

• Funnel-stage aligned compensation improves performance, fairness, and forecasting
• Modeling historical payout scenarios builds trust and reveals risk
• Transparent comp logic reduces disputes and increases adoption
• Designing for behavior, not just revenue, accelerates scale