In today’s world, incentive compensation management is extremely important. Promise of great perks and annual performance appraisals are no longer sufficient for motivating the sales team. Companies use compensation management to manage the financial and non-financial incentives that sales reps receive for their contributions. Compensation management encompasses all monetary/ non-monetary rewards given to sales reps for contributing towards the achievement of organizational objectives.
It is important for management to find out the things that drive sales performance and excellence. Furthermore, they must find ways of appropriately measuring sales performance. The good news for you is that you can make this process simple with an incentive compensation management tool. An incentive compensation management tool will allow you to avoid overpaying underachievers and retain your top performers. An incentive compensation management tool will help you to reduce errors, improve compliance, and optimize budgets.
All of this will help you increase the profitability of your business. With an incentive compensation management tool, you will be able to reward your sales reps fairly and accurately. There are many benefits of using an incentive compensation management tool. Following are the top 4 reasons for using this tool.
1. Gain Actionable Insights
No matter where you are and what time of the year it is, an incentive compensation management tool allows you to gain actionable insights into sales and performance. In order to achieve breakthrough sales performance, you can use this management tool to reveal sales trend indicators in real time. Furthermore, you can use this management tool to get real time status, reveal performance data insights, and quickly build your own reports.
2. Improve Engagement with Sales Reps
With an incentive compensation management tool, you can avoid lengthy and disputed resolution processes and streamline communication with sales reps. This management tool will help you create the real time engagement required by sales reps. Furthermore, you will be able to increase transparency, rank sales team’s performance, track compensation disputes, and get updated compensation statements.
3. Eliminate Hidden Costs
The things that increase the cost of incentive compensation management include exception handling, multiple systems, and contrasting data. These three things create a lack of transparency, waste sales time, and consume a significant amount of valuable company resources. An incentive compensation management tool helps you to overcome all of these challenges by bringing your sales data into a single database. This in turn eliminates any hidden costs and ensures maximum transparency.
4. Accurately Calculate Incentive Compensation
You will experience a lot of errors on manual incentive systems. By automating the process and providing you with a richer understanding of compensation data, an incentive compensation management tool will ensure accurate cash flow forecasts, minimize disputes, and mitigate incentive compensation errors.
There are many benefits of using an incentive compensation management tool. If you’re looking for such a management tool then contact our incentive comp experts to help you align your sales with your business goals.