Incentive compensation management has become an important aspect of
sales-driven companies. These companies have recognised, practised, and observed how introducing incentive compensation programmes instils commitment, enthusiasm, and a targeted approach across the sales force over time.
Employees are motivated by smart incentive compensation plans, which direct them to put forth their best efforts. Compensation planning is used by successful companies to reward every effort made at various stages of the sales cycle – from opportunity identification to closing the deal.
When done correctly, a well-thought-out incentive compensation plan may motivate employees to go beyond expectations, put in more effort, and prosper in today’s competitive market.
The Challenges of Implementing an Effective Incentive Compensation Management
Most companies use incentive compensation management, but only a small percentage of them succeed. According to the study, most companies are struggling to identify the best methods for implementing and managing sales incentives.
Implementing incentives based on key performance indicators or components of sales reps’ performance, for instance, is one of the most prominent
incentive compensation management processes. This is how companies identify how much extra work an employee has put in to meet the company’s objectives.
Seven Best Incentive Compensation Management Practices Every Sales Leader Must Follow
Some incentive compensation management practices are well-known, while others are new and proving to be successful. Read on to know more
