2021-10-06 (4)

Many companies evaluate the performance of their sales incentive plan designs regularly on a variety of business factors, as well as their impact on salesforce morale. These types of evaluations typically mix qualitative input from salespeople, at all levels of the organization, with insights gleaned from historical data crunching. Though this evaluation is critical, other components of the Incentive Compensation Solution, such as incentive plan administration and IC plan communication, require equal attention yet are frequently overlooked.

An incentive compensation (IC) plan’s main goal is to operate as a significant instrument for aligning salesperson behaviour with strategic corporate goals. It serves as an important tool for motivating and retaining outstanding salespeople. Making sure that the sales team does not get misaligned from the main objective of the company requires a clear understanding of the Incentive compensation plan.

How do Automated Solutions Help?

Automation has paved an easier but more efficient path to success today. You will see it everywhere, right from assisting employees in better time utilization, creating better business opportunities, or synchronizing geographically distributed teams for collective success. There are multiple tools and techniques available that can make the work easier for the sales team. Providing a supporting hand in the form of such tools will not only help make the process more quick and efficient but also boost up the morale of the team.

Organizing IC plans can become an effortless process. Better insights, quicker processes, deeper understanding, good communication, etc., are just some of the many plus points of tools such as payout calculators/earnings estimators/forecasters. They can also boost salespeople’s involvement by allowing them to see prospective payments based on various what-if scenarios, such as more sales, improved quality of play, and so on. This data helps salespeople focus and motivates them to go above and beyond to achieve or, in some cases, to go through an important juncture to qualify for larger payments. These tools will also help design the IC Plan in a way that will be beneficial to everyone involved. Sales Incentives are a crucial part of every sales team, it is what drives them. Thus, it becomes important to pay attention and carefully consider the factors while designing an incentive compensation plan.

When creating these reports and tools, there are a few things to keep in mind:

1. Scalability

Using new-age IC software to automate sales incentive computations will help you increase the efficiency of your incentive program management and organizational engagement. Scalability of infrastructure to allow corporate development without compromising the performance of the system. Make sure that your plan supports upstream and downstream system integration. With a modular plan design, manual involvement is reduced, and the system scales to meet business demands such as additional roles, new product releases, product maturity, and so on. Enables change initiative evaluation through modelling.

2. Actionable Insights

Comprehensive evaluation reports at the user and overall levels, as well as earnings estimators, provide ongoing insights to salespeople. This allows a better grasp of the IC plan and improves the overall alignment. Engaging and interactive dashboards provide a turning point of performance across geographies, assisting in the understanding of growth drivers and the development of novel IC plan concepts. Analysts can use the built-in overview reports and visualizations to identify any plan flaws ahead of time. It should help determine whether the report is about reporting or about exploration. The sort of action required is clearly defined by a common interpretation of the statistic and its pattern.

3. Accuracy

A strong IC framework enables end-to-end automation of payroll processing, including exceptions, as well as an audit-tracked method of managing subjective changes. It also provides quality assurance touchpoints throughout the system.

4. Efficiency

Administrative interventions and modifications are reduced because of the use of cutting-edge tech, integrated processes, and customizable design. With built-in progress reports at scalability levels and a uniform data flow, the continuing operations team may be leaner. The total cost of IC program management is greatly reduced by speedier executions, quicker adjustments, and greater operating excellence. End-to-end automation is possible because of seamless integration, a robust QA architecture, and standardized input and output formats.

5. Adaptable

Due to rapid changes in business dynamics, a solid sales incentive management solution will help you adjust to market changes more quickly. It also allows you to generate ideas based on built-in components, statistics, and visualizations on occasion. Built-in simulation helps you model business scenarios which empower you to make the right decisions.


There are multiple advantages of formalizing these findings for field representatives. A better understanding of IC planning, increased trust levels among employees, transparency in the process, efficient results in less time, and an increase in the level of motivation among employees are just a few examples of the several benefits it will reap.

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