In your executive position, incentive compensation creates a variety of responsibilities for you. At the highest level, people rely on you to ensure that the incentive process is managed consistent with legal regulations, company policies and employee expectations.
While it may not be your responsibility to create sales plans, determine their effectiveness or evaluate the sales information residing in your sales data, your team typically accepts responsibility for ensuring that the compensation promised to employees is accurately delivered in a timely manner. If payroll is wrong, your team’s phones start ringing… You may not have direct control over why an employee is paid in a certain way; but it is your responsibility to manage how she is paid.
Several elements of the compensation process can affect that:
Accuracy—A company is legally and ethically bound to pay employees according to employment contract terms.
Reliability—If the process of compensating employees is not reliable, a company is exposed to legal liability as well as damaged employee morale and decreased performance.
Transparency—This is critical to every compensation process. If everyone who touches, or is impacted by, the compensation process can’t appropriately see the necessary degree of details behind the compensation payments, the process loses credibility, administrative overhead will increase, sales performance will drop and profits will be lost.
Have you ever stopped to consider the unknown costs of manually managing incentive payments using spreadsheets; or using a system that wasn’t specifically designed to handle all the complexities found in true incentive management? For additional information regarding how Glocent can support your company’s human resource department, please click on the links below: