Design Compensation Strategies with Incentive Compensation Management Software
Make informed decisions through visual reporting and provide pay transparency to sales teams. Make data-driven decisions through streamlined compensation data on a centralized system.
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Who does the Incentive Compensation Management Software Help?
Sales Leader
With ICM software, you can gain deep insights to discover sales trends and receive data-driven support. Crafting performance reports and visualizing data have never been easier or more effective.
Learn MoreCompensation Admin
Complex compensation plans can be a nightmare, but not anymore! Our system drastically reduces calculation errors, and streamlines building & managing compensation models. Say goodbye to the complexities and hello to efficiency!
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Sales Reps
Sales reps can exactly know how, why, and when they are getting paid through individual performance dashboards and reports. So, they don’t have to waste time on their admin work when they can focus on getting more sales and commissions.
Learn MoreWhat can the Incentive Compensation Management Software do?
Step 1: Import Data
Step 2: Interpret Data
Step 3: Generate Reports
Step 1: Import Data
Step 2: Interpret Data
Step 3: Generate Reports
FAQ
Which is the best sales compensation software out there for management?
If you’re dealing with a variety of compensation types or you’re heavily focused on variable compensation and reporting for the end user, then Varicent or Performio is your best bet.
It’s a standout in the field of compensation management software. However, keep in mind that software alone won’t assist you in recommending a compensation structure.
For that, you’ll need the expertise of a consultant. There are a few big names in the field that can help you with this. Once you’ve got your structure sorted, you can then use your software to implement it.
Is it possible to automate the compensation process?
Yes! But, before we delve into the how, let’s make sure we’ve got a few things in place.
It all starts with gathering market data. This is crucial because it helps you understand the current trends and formulate the right territory coverage model for your business. This step is really the backbone of creating an effective incentive model for your sales team and, by extension, your entire business.
Now, once you’ve got your hands on all that market data, it’s time to craft the perfect incentive compensation model. This model should be designed to achieve your desired results. You might want to consider different quota models, commission plans, bonus schemes, and territory models. The goal here is to strike the right balance that will work best for your business.
Now, let’s talk about the real game-changer – a tool like Varicent. This tool can automate the development and management of your incentive plan. How does it do that? Well, it uses market analytics, AI, and machine learning to offer a solution that’s not only quick to deploy but also super easy to use.
So, there you have it! Automating the compensation process is not only possible but can also be efficient and effective with the right steps and tools. Remember, a well-planned, automated incentive compensation management (ICM) system can do wonders for your sales team and overall sales incentive compensation. Happy incentive management!
Best practices to create an incentive compensation plan?
When we talk about creating an incentive compensation plan, it’s crucial to have all the necessary data at hand. This may seem like a simple step, but it’s often challenging as the required data usually belongs to different departments, each with its own system. The three types of essential employee data you’ll need include demographics, pay, and performance.
Next, it’s imperative to establish connections with key executive stakeholders from various departments like HR, Sales, Finance, Sales Ops, and Marketing. This step is vital as it helps you understand the go-to-market priorities and set expectations on the key metrics. This understanding is then translated into the sales plan.
One thing to keep in mind is that the goals of different departments should align. For instance, Sales Management and Sales Reps might have different perspectives. While it might seem less strategic, it’s essentially about how strategies are implemented on the ground.
These discussions can reveal whether there’s a synergy between leadership’s perspective on the sales process and what’s actually happening in the field. How are reps dividing their time between acquiring new accounts and managing existing ones? Do they understand the sales plan? Can they summarize it at a high level?
Now, let’s talk about the role of visibility, calculation, commission, and salesforce in this process. Visibility into the sales performance allows for more accurate incentive calculations. The commission should be calculated in a way that motivates your salesforce to achieve their goals.
Remember, an effective incentive compensation plan goes a long way in driving sales performance. So, get your data ready, connect with stakeholders, and ensure alignment of goals to create an optimal plan.
Learn More: What is a Compensation Structure: Learn to Build Salary Structure
