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How Incentive Chargebacks Affect Your Bottom Line

What is an incentive chargeback? When a company pays their sales team advances on sales incentive compensation like sales commissions and the payment is wrong, the company has to issue a chargeback to attempt to fix the problem. With old methods of incentive compensation management (ICM) and commission calculation, errors could cause these administrative headaches quite easily. Sales teams reported their sales on outdated spreadsheets, which administrative staff had to analyze using time consuming and outdated methods to calculate sales commission payments before sending these payments to the payroll department. If commissions were split or other incentives were involved, the entire process could get even more complicated. With a system like this, sales employees often got overpaid or not paid on time, resulting in commission chargebacks. These chargebacks were then complicated to fix, and of course then the administrative staff had to review all the commission schedules and spreadsheets to find out where they went wrong. All of this costs companies money in payroll for administrative staff, transaction fees and over-payment of sales incentives. With an outdated sales incentive compensation system, companies were just throwing money away. New automated ICM software systems eliminate costly chargebacks and time consuming payment calculations in one fell swoop. Glocent's innovative ICM software makes the entire process more efficient. First, the software imports real-time sales data from sales tracking software. Then, Glocent automatically calculates sales commissions and other incentives using pre-set incentive schedules. Sales management can easily access the software from any secure Internet connection and make changes to sales commission calculations as well, and employees can also access reports through the software so they know exactly what their commission payments will be. This efficient, modern day technological approach to incentive compensation management eliminates costly commission chargebacks and increases sales team retention.

Transparency at the speed you do business!