As compensation plans for salespeople transition from commission to salary-based, industry companies are getting creative and flexible in how they pay reps. In addition, offering attractive compensation plans is imperative when employees have options and aren't hesitant to make a change.

College Hill Custom Threads' (asi/164578) proximity to Amazon and Microsoft headquarters in Washington has compelled the distributorship to keep its compensation offerings competitive. It allows reps to choose the plan they want as they build their books: Those starting out are 100% commission, and can choose to go to a salary plus commission as a reward for their work. The company also offers straight salary for those who would rather be inside sales reps.

In addition to health benefits and 401(K), reps receive a year-end bonus based on personal accomplishments. "If they read a certain number of business books, or hit their exercise benchmarks, or perform community service, or are featured in an article, we'll give them between $500 and $5,000 extra," says Vice President Jen Gangwish. "Everyone also gets one paid trade show a year, and after three years with us, you get a plane ticket to any destination in the world."

At Screenbroidery (asi/305623), after trying all types of compensation plans, management decided to make everyone salaried with bonuses dependent on hitting sales goals. "We have a whiteboard where we track those goals," says CEO Tom Rector, "so everyone cheers each other on. It's a busy workplace, but it's an awesome teamwork environment."

In addition, Screenbroidery offers health benefits and a matching IRA plan. Rector says they want to invest in people's futures and what's important to them in their personal lives. "We'll help them find resources for building a personal budget and planning retirement," he says.