Incentive compensation planning is a complex subject. Your compensation framework must be internally equitable, externally competitive and compliant as per the pay and labor laws. Incentive compensation is a variable pay that is given to deserving candidates for outstanding performance. It includes bonuses, company stocks, retirement plans, tour packages and many more.
The objective of any sales team is pretty clear: sell more and drive revenue. Today, most of the organizations are offering mixed pay structure, includes basic salary with commission-based pay. These structures have led to the practice of Incentive Compensation Management (ICM), which includes compensation planning and processing.
But most of the organizations failed to design effective incentive planning and if few of them successful designed then further failed to implement it effectively. Because still following manual methods like using spreadsheets for compensation management. Which leads to many complexities like:
- Required time, cost and effort
- Lack of transparency, visibility and control
- Setting unrealistic goal
- Higher attrition rate
- Slower growth rate
So slowly and steadily organizations are realizing the need of having an incentive compensation management software. Incentivizing your sales force to push product at specific times or to sell into a specific region complicates the design of the plan and overall management. Incentive compensation management software (ICM) provides organizations with a flexible and easy-to-use solution to design, manage and optimize their incentive compensation programs.
Incentive compensation management software can help you in many ways like:
- Provide you all required details to prepare your incentive plan like your financial status, incorporate territory, product portfolio, period specific quotas and targets etc…
- You can easily disseminate your organizational auditable incentive strategy to all the concerned employees through email integration and notifications with full justification and control
- Help you to identify the employees who are worthy of incentives and even gauge how effective the individuals have been at aligning their efforts with the company’s vision
- Facilitate surveys that bring to light employee opinion about the fairness of their incentive compensation
- Flexible system allows for rapid changes in compensation models driven by changing business need and its ability to calculate in any number of currency
Advantages of having an incentive compensation management software:
- Motivate or instigate every employee for giving their very best
- Establish and communicate organizations vision effectively
- Align employees with the organizations vision by rewarding behavior, require to achieve organizations goal
- Competitive advantage to attract and retain talent
- Improved visibility, control and productivity
- Enhanced flexibility, efficiency and margin
- High data integrity
- Low cost of ownership
- Higher revenue