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Within a sales context, the Total Target Compensation (TTC) refers to the total cash compensation available for the sales job or position. This would encompass all forms of both fixed and variable compensation (base pay, bonuses, short-term incentives and commissions) to the individual for achieving expected (quota) results. It also includes any direct allowances (e.g. business vehicle allowances) paid to the salesperson.

There are many factors that influence the right TTC for a given position. While it is important to remain competitive, it is integral to remember that your organization should determine the compensation strategy, not the market average for that specific job.

What influences Total Target Compensation?

1.  Budget- What is the maximum amount your company can afford to compensate employees?

2. Equity- Are you paying employees fair salaries based on the roles and responsibilities of their unique position?

3. Responsibilities- What responsibilities do your employees have? Are they easily replicable, or is the position high level?

It is important to note that the right TTC will differ from employee to employee. On-site child care, gym memberships and flexible schedules are all viable ways compensate employees in addition to standard coverage.

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