When it comes to sales Incentive Compensation Management (ICM), sales commissions are not always enough to motivate your sales team. Reward incentives can make hard-working sales teams feel valued by their company and can lead to improved performance. Rewards for employee behavior other than sales can also improve morale and foster a corporate culture of trust.
Problems with Other ICM Solutions
Unfortunately, many on-demand sales performance management solutions cannot accommodate a wide variety of variables that should be considered for reward incentives. With inaccurate and outdated forms of incentive calculation, reward incentives can also run the risk of errors and incorrect reporting.
- High Administrative Costs – Old methods of calculating reward incentive payments involved hundreds of man-hours and created headaches for sales, accounting and payroll departments. Spreadsheets had to be compiled, commissions calculated, and then other sales incentives like bonuses or performance awards could be calculated.
- Payroll Errors – Errors in incentive compensation payments can destroy a corporate culture of trust and result in high-cost payroll disputes. When a sales team loses faith in their company, not only does sales performance suffer but employee morale as well.
- Reward Incentive Reports – Inaccurate or even misleading reward incentive reports can also create problems for the company as a whole. In the post SOX Act era, corporations must be very careful to ensure correct internal audits, and inaccurate incentive compensation reports can be very dangerous.
How Glocent Solves These Problems
Glocent is an automated ICM solution that uses a company’s sales transaction data to automatically calculate sales incentive compensation, eliminating unnecessary administrative costs. Not only does Glocent provide easy commission systems, authorized users can implement bonus structures and reward incentives into the ICM system. Sales management can view reports of sales data and performance activity in order to analyze sales performance and calculate rewards incentives. Individual sales representatives can also view accurate and up-to-date reports of their incentive compensation so that they know exactly how much they are getting paid for their efforts. Glocent also generates Sales Transaction Intelligence (STI) to reduce the potential of sales forces “gaming” the incentive process.
With Glocent, companies can implement sales performance strategies like bonuses and reward incentives with ease and be guaranteed 100% accurate and SOX compliant reports of all incentive compensation activity.