Automation of the incentive management process
Eliminate payment errors
Most companies don't know what they don't know on the issue of commission overpayments. 99.5% of sales people will not volunteer the fact that their commissions have been overpaid. Don't ask why is it so – ask yourself what needs to be done to eliminate overpayments. Sometimes errors are policy driven, often they are driven by systematic errors or through human error.
PerformanceCentre provides a platform for drastically reducing the risk of errors. For companies with commission budgets in the millions of dollars – this can produce six figure dollar savings.
And if you are currently using Excel worksheets and macros to calculate sales incentives, you are almost certainly unable to...
- pay on time, every time
- guarantee accuracy of payments
- respond easily to plan changes
- easily forecast financial impacts of modifying plan variables
- respond easily to organisational structure changes
- report without spreading hundreds of copies of files across the organisation
- unable to effectively audit prior period payments
If you’re currently using excel, PerformanceCentre is guaranteed to seem like heaven
Reduce administration costs
How many full time heads are you spending on the design and implementation of your plans. Best practice in this area range from 0.5 FTE to 1.5 FTE per 1,000 payees depending on the complexity of the plan, administration scope etc.. How much is your plan administration costing you?
Here is a list of the hidden costs you could be incurring by not using an on demand incentive management solution:
1. Payment sign off
Is the end of period approval process smooth or do many people spend chunks of time reviewing disparate spreadsheets and sending and responding to clarification emails. Does time get chewed up in last minute ‘crisis’ meetings reviewing a payment issue?
Payment communication and performance reporting
Are reports scattered via email using macros or are they sent manually. Do reports need to be generated manually or does detailed reporting get all too hard after a couple of periods? How much time is being spent or should be spent in these areas?
2. Plan review time
How much time do you spend each year reviewing incentive plans? How much of this time could be saved if there was a solid platform to work from in terms of analysis data? How much time would be saved if you have a single database providing scenario modeling of proposed changes? How much time is spent compiling summary reports on plan expenditure?
3. Plan launch time
How much time is spent relaunching the plan each year? How much time is spent on plan communication?
4. Rebuild costs
What are the costs of making revisions to the plan? What are the system costs?
How much time is spent rebuilding excel sheet?
5. Leave costs and othe revents
- What happens when the administrator goes on leave? What happened when the administrator resigns?
- What are the cash expenses and time costs of these events?What are the risks of fraud?
- How often is the plan administration audited? How would the process stand up to an audit?
- How much time would an audit demand in terms of generating new reports, digging up old data, investigating anomalies?
- Is your sales incentive system backed up regularly?
- What would be the time cost of having to recreate a commission period(s)?
- What would the costs to your health be!?
