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Incentive Compensation Management and Sales Organizations
Although many executives and sales professionals may be familiar with concepts like Sales Performance Management (SPM) and Customer Relationship Management (CRM), they may not be as well versed in internal sales processes like Incentive Compensation Management (ICM). SPM can be invaluable for sales organizations who want to motivate teams and make sales processes more efficient, and CRM solutions can streamline a company's sales process and make things easier for representatives. However, ICM affects everyone within a sales organization because it determines how sales incentives like bonuses, quotas, commissions and other payments are calculated. While many sales professionals rely on their sales incentive payments, not many understand the effects of ICM on the sales organization as a whole. An inefficient incentive compensation management system can cost a company money and affect the morale of the entire sales department. When sales incentive payment calculations are time consuming for administrative staff to complete, the company loses money in payroll. If these sales incentive payments are too high because they are based on inaccurate reports, then the company loses money on over-payments and disputes with sales representatives over errors in payments. Errors in incentive payments can then lead to more paid time for administrative staff, and create a vicious cycle of loss. An automated ICM software solution can eliminate errors in sales incentive payments and make a company's entire ICM system run more efficiently. A company's ICM system also has far-reaching consequences when it comes to corporate culture, as well as the morale and retention of sales representatives. Especially in sales organizations, employees' trust in their company is partially based on the timeliness and accuracy of their incentive payments. A corporate culture of trust is fostered by efficient internal processes and the free availability of sales reports. When the entire sales force can clearly see how they are being rewarded for their efforts, they are more motivated to go after sales. An automated ICM solution like Glocent offers sales organizations a way to avoid all these pitfalls and increase the efficiency of their sales teams.