Sales incentive plains are ineffective for two-fifths of European firms, according to research from HR consulting and outsourcing firm Hewitt Associates.

The survey of 138 organisations across 15 European countries and 20 industry sectors found that 41% of firms interviewed claimed their sales incentive plans were ineffective or were uncertain of their ’ effectiveness.

Despite this only 30% had altered their sales plans during the first half of last year, with many organisations remaining unsure as to the impact of these changes in terms of driving the business.

Robert Miller, senior reward consultant at Hewitt Associates, says: “The low perceived effectiveness of sales plans, despite a relatively small number of companies actively making changes to them was a surprise element of the results.

“The findings reveal that most organisations have opted to change their targets to reflect economic conditions, but have stopped short of fundamental plan design.”