Pulse Survey Series

The sales comp operations efficiency report

Our pulse survey found that comp admin is still optimized for execution, not effectiveness. Teams are keeping payouts accurate, but fragmented

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Key takeaways

Sales comp admin is mastering payouts. But is the plan working?

Our pulse survey found that comp admin is still optimized for execution, not effectiveness. Teams are keeping payouts accurate, but fragmented systems and manual processes limit their ability to improve plans, prove impact, and use compensation as a revenue lever.

It's still run like a
cost center

Manual work, fragmented systems, and reactive processes keep teams focused on payout control instead of plan improvement.

Current priorities miss key motivators

Leaders cite quota fairness, plan complexity, and performance visibility as bigger motivation challenges than payment errors or disputes, but the former aren't reflected in admin priorities.

Plan effectiveness is undermeasured

Most teams do not regularly analyze whether plans are driving the intended seller behaviors or return on incentive spend.

Findings

Findings at a glance

Strategic capacity is sidelined for admin work

54%

say data prep is one of their top sales comp admin effort areas​

55%

don't conduct plan effectiveness analysis regularly (or only do soduring plan design)

63%
21%

don't track any comp admin 
efficiency or effectiveness metrics.​

30%

Don't conduct any plan ​effectiveness analysis at all.

The operating model is still fragmented

83%

use spreadsheets in their sales comp admin process

28%

describe their compensation environment as fragmented or lacking a clear system of record​

74%

Are not primarily operating from a single system​

The motivation mismatch

Traditional comp admin outputs are largely covered:

68%

reported timely end-of-period statements

61%

reported ≥98% payout accuracy

The motivators break upstream

Quota fairness, plan complexity, and lack of proactive guidance indicate seller experience is falling short.

49%

say sales targets are perceived as unfair or unrealistic

only
42%

say complex plan designs negatively impact motivation​

34%

estimate sellers spend five or more hours per month shadow accounting

8%

report providing next-best-actions to help sellers improve performance​

part 1

Comp admin teams currently struggle to prioritize effectiveness

The biggest factors keeping the function stuck in tactical execution.

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Insight 1

Teams are spending more time maintaining the machine than improving it

The data shows comp admin teams are disproportionately focused on routine execution tasks rather than plan effectiveness and ongoingoptimization.

Where sales comp admin teams spend the most effort

Source: Forma.ai Sales Compensation Admin Efficiency Pulse Survey, 2026. n=71.

Community commentary

"The function can be highly active and still strategically under-leveraged.​

The issue usually isn’t team capability. It’s that the process is consuming entire teams' expertise completely before they can apply it to higher-value questions like 'Is the plan working?', 'Are sellers responding the way we intended?' 'Where shouldthe business adjust?'"

Kermit TheFrog

VP, Global Sales Compensation, Muppet inc

The implication

There's a strategic capacity issue.​

Data preparation, manual adjustments, plan changes, and dispute support are necessary. ​​

But when these tasks require too much of a team's capacity, there's less time to analyze whether compensation plans are working. ​

With admin work dominating, teams are not necessarily getting time to inspect how comp can better support business performance. ​

And so, today, incentive plan optimization is taking a back-seat, meaning less motivated sales teams and revenue left on the table.​​

Forma recommends

There's a strategic capacity issue.​

Compensation leaders need to identify the activitiesconsuming the most recurring admin capacity(particularly data preparation, manual adjustments,disputes, and exception handling).​Then consider which of these activities trulyrequires compensation expertise, and which existbecause the process hasn't evolved? ​

  • Activities driven by repetitive rules should become candidates for standardization, automation, or improved system support. Consider where AI can be applied for true process transformation.​
  • Reserve the team's expertise for higher-value work like plan effectiveness, incentive ROI, and performance improvement. ​

The goal: spend less time administering compensation and more time improving its impact.​

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