? Determining the accepted market rate of the times is one way of designing a complete and compatible compensation plan. This should start at the very beginning of the lean product cost right up to the cost eventually paid for by the buying customer. The compensation plan should reflect these costs hidden or otherwise. ? Align the compensation plan to the work load undertaken which is relative to the market rate of the time. These should take into account any progressive improvement of sales and performances. The ideal behind any compensation plan should be that it works as a good ongoing motivator. Goals should be reached because of the prime reason of wanting to be compensated as promised. Therefore understanding the value of a good compensation plan will then contribute to successful sales records. Though fairly rare, there is also the issue of over compensation. When over compensation occurs, those who benefit from it will no longer find the need to put in 100% effort as there would in actual fact be no need for it. This will also affect those who actually work towards the compensation only to find that it is not adequately designed.
