Glocent: Quota Management Solutions
Large businesses looking for effective ways to motivate their sales teams and improve Sales Performance Management (SPM) will often turn to sales quotas. While quotas can be an important part of an overall SPM strategy to bring sales teams in line with corporate objectives, they can also cause problems for the company if an accurate and effective Incentive Compensation Management (ICM) system is not in place.
Problems Caused By Ineffective ICM Solutions
When sales quotas are tied to incentive compensation like commissions or bonuses, they are thought to be a great motivating tool as part of an overall SPM strategy. If a company wants to increase sales of a given product line, sales managers can design a new quota system to implement the new corporate objective within the sales department. In theory, a SPM strategy like this would be able to shift the sales team’s focus and align sales with corporate objectives. However, if the incentive compensation system that rewards sales reps for meeting their quota isn’t reliable and accurate, the entire strategy breaks down.
One problem caused by ineffective ICM solutions is inaccurate sales reporting. Many outdated ICM systems require sales reps to report their own sales in order to calculate commissions and quotas, and this kind of system can lead to misleading reports. Often, sales managers give their teams the benefit of the doubt and don’t double check reports, and they in turn report misleading sales information.
If the ICM system in place isn’t reliable and consistent, either through poor use of Sales Transaction Intelligence (STI) or people “gaming” the system, then sales teams can lose faith in their company. Sales representatives who consistently get undercompensated for meeting quotas, or are aware that others are being paid for bad sales, can feel that their efforts are going unrewarded and are therefore less likely to aggressively pursue sales. Employees who are overcompensated for missed quotas won’t be motivated to improve. When sales professionals have to file payroll disputes over sales incentive compensation, the trust in their company evaporates.
Glocent: Your Quota Management Solution
Glocent’s automated incentive compensation calculation system ensures accurate reporting and compensation payments, which benefits both the company and the sales department. Glocent benefits the company by allowing SPM strategies to be implemented with ease. For example, an authorized user can set sales quotas and commission percentages all within the ICM system. With Glocent’s STI capabilities, executives can see if their SPM strategy is working. Because incentive compensation calculations are based on actual sales data and not self-reported data, or on unmanageable spreadsheet formulas, executives from the sales manager to the Chief Financial Officer can be confident that the sales information they see is 100% accurate.
An effective ICM solution like Glocent also benefits sales representatives because they will be able to see reports of their own sales transaction activity online. Glocent’s consistent ICM system also reduces payroll disputes and increases trust in the company. When an employee can easily see if they are meeting their quota and can trust that they will be paid for their work, they are more motivated, and sales improve.