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Effectively Leveraging Sales Incentives to Increase Performance
Sales incentive compensation management has long been considered just a job for the payroll or accounting department, but effectively managing sales incentives can be an important way to motivate sales teams and increase performance, resulting in increased revenues. If companies take a haphazard approach to incentive management, they can end up costing the company money without getting a return on their investment in increased sales. Having an efficient sales incentive strategy helps companies save money while also motivating their sales teams. Most companies my think of sales incentives as simple monetary compensation like commissions for their sales teams when they meet their sales quotas. While it's true that incentives can motivate a sales representative by showing them that their hard work is valued by their employer, an inefficient incentive compensation management system can negate the positive effects of commissions. When the incentive compensation calculations contain errors or incentive payments aren't on time, sales teams can lose faith in their company. Morale breaks down when sales representatives aren't sure that their commissions, bonuses and other incentives will be paid in a timely and accurate fashion, leading to decreased motivation and high turn around. Outdated IC systems can also lead to reporting and payment errors. These kinds of errors, overpayments and chargebacks can in turn cost the company money as well. Not only are companies losing money by overpaying their sales teams, but having to fix errors can cost money in terms of payroll for administrative staff. ICM systems that require time on the part of administrative or payroll staff can also cost the company money. One way to avoid these problems is to install an automated sales incentive compensation management software solution. Executives might think that installing and implementing an automated ICM system could also cost the company money, but ICM software solutions like Glocent have a high ROI in terms of increased sales. With an automated ICM software like Glocent, companies can motivate sales teams while saving money on administrative costs.