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Home > Incentive Compensation Management > How Efficient Incentive Compensation Management Helps Sales Organizations
How Efficient Incentive Compensation Management Helps Sales Organizations
Sales organizations succeed based on the performance of their sales teams, and companies need solutions for supporting their teams so that they can meet and exceed their sales quotas. Unfortunately, many companies neglect important back-end sales performance processes like incentive compensation management. Many managers and executives aren't completely familiar with sales incentive compensation management strategies and how these strategies can benefit the sales teams and the organization as a whole. Basically, incentive compensation is the way that the company rewards sales representatives for their work, including commissions, quotas and bonuses. ICM Benefit #1: Sales Team Motivation When companies manage their sales incentives efficiently, sales representatives trust that they will be rewarded for going after sales and fulfilling corporate objectives. This increases motivation of the sales teams and helps them keep their heads in the game. ICM Benefit #2: Implementing Corporate Objectives Managers can direct their sales teams to fulfill corporate objectives by providing incentives for certain types of sales. This strategy can be easily implemented with an incentive compensation management solution that allows management to easily change sales quotas and incentive schedules. ICM Benefit #3: Administrative Costs When companies use old fashioned ICM methods like spreadsheets, administrative staff spends a lot of time (costing the company money in payroll) to calculate incentive payments and send those payments to payroll. If incentive payments are wrong, sales reps can initiate chargebacks, thus creating more administrative costs. With an ICM software solution like Glocent that automatically calculates sales incentives, companies save on these administrative costs. In order to succeed, sales organizations need powerful, efficient sales performance management solutions that don't neglect incentive compensation management. Companies need to not only make it easy for their teams to find prospects and complete sales, but they need to support their teams with efficient, automated sales incentive compensation management solutions like Glocent.