Paying employees based on their performance encourages and rewards staffs for their positive impact on business operations. Theoretically it should be an effective way to tie employee’s benefits with a company’s development however, the executives may experience difficulty in implementing these practices.
(SOURCE: Performance-Driven Compensation: The Corporate Talent Insurance Policy, Oracle)
In the above image, the performance curve displays a bell shape showing the ideal scenario occurs when sales bonus meets actual performance, not when it is below or exceeds.
It’s a very interesting finding. But managing sale reps’ performance can be difficult, especially when your organization is a large enterprise.
Today, Cresco International is helping organizations to fix this concern with IBM Incentive Compensation Management (ICM).
“When you put the capabilities of a solution like ICM alongside the analytics platforms that we’ve invested in, you can really unlock the capabilities of the data,” said Alan Chapman, IBM’s director of Sales Performance Management. “We’ve seen great results from customers who can dive into their sales compensation and understand what their compensation plans are really doing.”
Incentives will automatically be calculated and updated, with online compensation statements and reporting available to all sales representatives. IBM ICM also helps in streamlining lifecycle and credential management processes, reducing operational cost and audit tracking. If you want to change companies’ compensation rules or make an adjustment, the what-if scenarios function allows users to view the impact and advance without editing the dataset. Sales agreement renewal process can also be done on the ICM platform – sales managers have the capability to sign off a new sales rep plan or make changes.
Learn more about ICM today, contact us for a demo.