Companies See Fewer Sales Force Reductions in 2009, Watson Wyatt Survey Finds
April 09 2009 - 11:11AM
PR Newswire (US)
Other Cost-Cutting Measures to Ease as Companies Look to Grow
Revenue WASHINGTON, April 9 /PRNewswire-FirstCall/ -- The number of
employers planning to reduce their sales forces or use other
short-term cost-cutting measures over the next several months is
expected to decline, according to a survey by Watson Wyatt
(NYSE:WWNASDAQ:WW), a leading global consulting firm. Instead,
employers will be looking at ways to manage costs, grow revenues
and position themselves for when the economy recovers. The Watson
Wyatt survey, conducted in February 2009, found that only two of 10
companies (21 percent) plan to reduce sales headcount this year, a
sharp decline from the 53 percent that did so done so earlier this
winter. Additionally, just two of 10 of companies plan to introduce
or expand special incentives (SPIFFs) or contests to energize
sales, compared with 42 percent previously. The survey also found a
similar decline in the number of employers planning to lower sales
goals and quotas, or modify sales professionals' territories. The
survey was based on responses from sales and HR executives at 91
large U.S. companies. "This economic downturn has taken its toll on
most sales forces," said John Bremen, global director of sales
effectiveness and compensation consulting at Watson Wyatt. "In
preparation for the economy's eventual recovery, companies are
winding down their short-term cost control initiatives. Instead,
they are beginning to focus on sales productivity and growth." The
survey found that the recession is providing most companies with a
reprieve from the pressures of attracting and retaining sales
professionals. Only 20 percent of companies reported having greater
difficulty attracting or retaining sales professionals this year
compared with 2008. However, even with a somewhat frozen labor
market, two-thirds of employers are taking measures to strengthen
their recruiting and retention efforts in preparation for an
economic recovery. For example, almost one-third (31 percent) of
employers are adding to or modifying their sales training and
reward programs for this year. "Most companies expect business
conditions to remain challenging throughout 2009. At the same time,
many are realizing the only real path out of the recession is to
grow revenues rather than use short-term remedies or cuts. As
companies plan for the balance of this year and next, having
focused and motivated sales forces will be essential to that
effort," said Bremen. Copies of the survey, "Strategies to Manage
Sales Force Investments in the Global Recession, Update: April
2009," are available at
http://www.watsonwyatt.com/salesinvestments. About Watson Wyatt
Watson Wyatt (NYSE:WWNASDAQ:WW) is the trusted business partner to
the world's leading organizations on people and financial issues.
The firm's global services include: managing the cost and
effectiveness of employee benefit programs; developing attraction,
retention and reward strategies; advising pension plan sponsors and
other institutions on optimal investment strategies; providing
strategic and financial advice to insurance and financial services
companies; and delivering related technology, outsourcing and data
services. Watson Wyatt has 7,700 associates in 32 countries and is
located on the Web at http://www.watsonwyatt.com/. DATASOURCE:
Watson Wyatt CONTACT: Ed Emerman for Watson Wyatt, +1-609-275-5162,
; or Steve Arnoff of Watson Wyatt, +1-703-258-7634, Web Site:
http://www.watsonwyatt.com/
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