Incentive compensation is a form of pay structure which is based upon how the business and its individual employees perform. Essentially, employees receive a base salary with an extra reward (tallied up using a sales compensation calculator) for meeting specified targets. There are multiple performance metrics that can be used to determine which employees qualify for commission.
Create and track incentive compensation
When developing your incentive compensation plan, your decision-makers will need to work hard to create a system which attracts the best sales talent, motivates and encourages the right business decisions. However, incentive compensation plans can become complicated, particularly when they involve several different performance measurements – or if you have different employee levels, for example. Your sales compensation calculator within Commissionly can help speed up the process.
The benefits of incentive compensation
Incentive compensation is incredibly effective when it comes to encouraging desired behaviour in employees. It allows organisations to promote upselling, incentivise customer interaction and the use of a variety of different sales techniques.
Here’s how a sales compensation calculator within our compensation software could help your company to benefit:
Help align your incentives with your business objectives.
• More likely to meet long-term and short-term targets of the business.
• Focus attention on the behaviours and working culture of the business.
• Encourage your teams to plan ahead and highlight any expectations.
• Attract more sales-driven candidates for vacancies within your business.
• Save money related to salary rises through the allocation of funds for when goals are achieved.
Creating the perfect incentive compensation plan
While incentive compensation is a great concept for improving productivity, it can be difficult to implement without the right commission calculation software.
It’s virtually impossible to manage different commission parameters with manual systems or spreadsheets. This is where a sales compensation calculator comes in. With our commission calculation software, your organisation can ensure that employees are rewarded accurately and on time, to help keep them motivated to continue hitting those all-important sales targets.
For more information on how Commissionly could help you to develop your incentive compensation strategy, please do not hesitate to contact us today.