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To attract\u2014and retain\u2014top sales talent, sales leaders must develop a competitive compensation strategy. We surveyed sales reps, managers, and VPs across industries to understand the sales landscape in the New York area and to provide benchmarks for salary and OTE, as well as insights about compensation plan structure and incentives.<\/span><\/p>\n For a deeper look at sales compensation insights across the United States and Canada, visit our <\/span><\/i>2019 Sales Compensation Study<\/span><\/i><\/a>.<\/span><\/i><\/p>\n Compensation is the top driver in attracting sales employees (<\/span>Gartner 2019<\/span><\/a>), and high performing salespeople are paid above the market average.\u00a0<\/span><\/p>\n Companies can easily disqualify themselves as desirable employers of high-performing salespeople if they don\u2019t provide a competitive compensation package, and such a lack can also negatively impact retention. In a survey of top performers, 79% said that compensation was very or extremely important in their decision to stay with an employer, yet 43% of them also believed their current salary to be below market average.<\/span><\/p>\n 43% of top performing respondents believe their compensation plan is below the industry average.<\/p>\n<\/div>\n Employee perception of compensation plans is a key lever of employee satisfaction and employers should investigate the issue thoroughly\u2014the average cost of turnover per sales rep is $97,690 (<\/span>DePaul University<\/span><\/a>), and it can be higher for managers and sales executives. Benchmarks can be used to understand what a competitive salary looks like, but it is also important to discuss other factors that sales professionals care about, such as quota structure and incentives.<\/span><\/p>\n Sales professionals in the New York area<\/span><\/p>\n Roles<\/b><\/p>\n Gender<\/b><\/p>\n Industries<\/b>\u00a0<\/span><\/p>\n When compared with other states in the US, New York\u2019s sales professionals reported the fourth-highest average base salary and third-highest OTE. These are the high-level compensation numbers across all roles\u2014reps, managers, and executives. Role-specific figures are discussed separately.\u00a0<\/span><\/p>\n For all respondents across sales roles (reps, managers, VPs), New York:<\/span><\/i><\/p>\n Average Base Salary:<\/i><\/b> $93,000<\/span><\/p>\n Average OTE:<\/i><\/b> $150,000<\/span><\/p>\n When the responses for only the highest performers\u2014defined as salespeople who have exceeded their quotas\u2014were examined, a modest lift in base salary and OTE was observed.<\/span><\/p>\n For high performers across sales roles (reps, managers, VPs), New York:<\/span><\/i><\/p>\n Average Base Salary:<\/i><\/b> $97,000<\/span><\/p>\n Average OTE:<\/i><\/b> $155,600<\/span><\/p>\n Base salary and OTE of all respondents<\/p>\n<\/div>\n Base salary and OTE of top performers<\/p>\n<\/div>\n Separated by role, the average base salary and OTE are as follows.\u00a0<\/span><\/p>\n Quota-carrying sales reps:<\/span><\/i><\/p>\n Average Base Salary:<\/i><\/b> $84,000<\/span>\u00a0<\/i><\/b><\/p>\n Average OTE:<\/i><\/b> $133,000<\/span><\/p>\n Front line manager:\u00a0<\/span><\/i><\/p>\n Average Base Salary: <\/i><\/b>$110,000 <\/span>\u00a0<\/i><\/b><\/p>\n Average OTE:<\/i><\/b> $171,000<\/span><\/p>\n Vice President of Sales:<\/span><\/i>\u00a0<\/span><\/p>\n Average Base Salary:<\/i><\/b> $130,000 <\/span>\u00a0<\/i><\/b><\/p>\n Average OTE:<\/i><\/b> $216,000<\/span><\/p>\n Average OTE by role<\/p>\n Average base salary by role<\/p>\n<\/div>\n The highest-paying industry is Professional Services, with the others ranked as follows:<\/span><\/p>\n The split between base salary and quota is another important factor in attracting and retaining the right talent, yet <\/span>over half (53%) of respondents<\/b> said they <\/span>didn\u2019t have their ideal compensation split.\u00a0<\/b><\/p>\n The ideal balance depends on the company\u2019s strategy and individual responsibilities. The respondents surveyed showed a wide range of splits, but base salary typically formed the larger portion of their total compensation package.\u00a0<\/span><\/p>\n 50% base \/ 50% commission:<\/span><\/i><\/p>\n 25% of respondents<\/b><\/p>\n 80% base \/ 20% commission:<\/span><\/i><\/p>\n 25% of respondents<\/b><\/p>\n 60% base \/ 40% commission:<\/span><\/i><\/p>\n 24% of respondents<\/b><\/p>\n 100% base salary:<\/span><\/i><\/p>\n 18% of respondents<\/b><\/p>\n 0-40% base salary (commission-heavy):<\/span><\/i><\/p>\n 8% of respondents<\/b><\/p>\n Respondents\u2019 compensation split between base salary and commission<\/p>\n<\/div>\n In examining the incentives included in respondents\u2019 compensation packages, it was found that <\/span>82% had uncapped commission<\/b>, letting them earn in a way that reflected the value they brought to a company. In addition, <\/span>53% had accelerators<\/b>, and some respondents enjoyed team bonuses and recognition programs. Only<\/span> 16% of respondents were compensated with equity.<\/b><\/p>\n Incentives in respondents\u2019 compensation packages<\/p>\n<\/div>\n Competitive compensation is a major factor in retention, and 79% of respondents said it was very or extremely important when deciding whether or not to stay with their current employer.<\/span><\/p>\n 43% of high performers believed their compensation plan was <\/span>below<\/b> industry average, while another 43% believed it was <\/span>at<\/b> industry average; only 14% believed it to be <\/span>above<\/b> average.<\/span><\/p>\n In order to lower turnover rates, employers should have annual compensation plan reviews to bring more of their top performers into the group who believe they are being paid competitively\u2014and above the average.<\/span><\/p>\n Survey respondents reported their top concerns about their total compensation package and sales support structures.<\/span><\/p>\n The main concerns reported were:<\/span><\/p>\n Not only do employers need to pay a competitive base salary, they also need to consider the design of their plans, to make them easily understandable and clear on how success and increased earnings can be achieved.<\/span><\/p>\n Other factors that can be examined and improved upon include:\u00a0<\/span><\/p>\n Respondents cited a number of concerns about their current compensation packages and the support provided for their sales role<\/p>\n<\/div>\n Compensation is a key driver of quality hiring and retention, yet top performers may not perceive their packages as properly reflecting the value they bring to their teams. This jeopardizes their relationship with their employer, and turnover is costly to a company\u2019s revenue, brand, and morale.\u00a0<\/span><\/p>\n Leaders should use industry benchmarks to ensure above-average compensation for sales professionals and to develop a well-rounded package that not only reflects the right numbers, but is also structured in a clear way with advantageous quota splits and incentives.<\/span><\/p>\n For more information about sales compensation, including additional data from sales professionals across the US and Canada, download the Peak Sales <\/span>2019 Sales Compensation Study<\/span><\/a>.<\/span><\/p>\n relpost-thumb-wrapper<\/p>\n <\/p>\n <\/p>\nWhy sales compensation matters<\/b><\/h2>\n
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<\/p>\nNew York Sales Salaries<\/b><\/h2>\n
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<\/picture><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nBase Salary and OTE<\/b><\/h3>\n
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Compensation split<\/b><\/h3>\n
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<\/p>\nIncentives<\/b><\/h3>\n
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<\/p>\nCompensation\u2019s role in retention<\/b><\/h3>\n
Top areas for improvement<\/b><\/h3>\n
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<\/p>\nDeveloping a competitive sales compensation plan<\/b><\/h3>\n
<\/div>\n\nRelated posts<\/h3>\n
<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n<\/div>\n4 Interview Process Steps for Hiring Top Performers<\/div>\n<\/div>\n\n<\/div>\nHow ProofID Ramped U.S. New Business Sales Pipeline from 0 to $1M<\/div>\n<\/div>\n\n<\/div>\nPeak Sales Secures U.S. Sales Team for Fetch.ai<\/div>\n<\/div>\n
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