Every company makes forecasts about their net worth, potential annual revenue and other factors that are integral to business growth. However, employers often make the mistake of not predicting their outcomes when it comes to employee productivity and output – key drivers of a company’s overall performance. In addition to using sales analytics to track and measure current employee performance, employers should consider using data analysis to factor in various outcomes in reward and recognition programs.
With an incentive compensation plan in place, employers are able to align their performance objectives with rewards, whether they are bonuses or merit increases. Through setting rewards that target various performance levels, companies can motivate workers to meet sales quotas and key performance indicators, increasing sales along the way. However, a plan itself will not get businesses to the level they are hoping to achieve.
While these programs are effective at connecting business objectives and performance, there is more to incorporating these initiatives in the company model. Companies need to figure out how to change their employees’ behavior and push toward growth to meet future revenue targets, according to the Incentive Research Foundation.
Employees have the potential to greatly boost their performance through the right incentives, coaching and tools, but these might be hard to quantify. One technique top sales leaders use to make it easier to determine which sales strategies and incentives will work for them is “what if” analysis. Using what if analysis, companies can determine whether their existing rewards programs will help achieve their desired outcomes.
Benefits of what if analysis
For some workers, it is hard to imagine the carrot at the end of the stick when going about their everyday routine. Quarterly or annual bonuses might seem too far away to think about on a daily basis and whether or not they are closer to achieving their sales quota. However, to change this, employers can use what if analysis to illustrate to workers and managers what kind of reward staff will receive for a job well done.
As a valuable tool for sales performance management, what if analysis allows employers to forecast the reward that is related to sales outcomes. This software also gives management the ability to compare incentives and estimate scenarios for finance.
What if analysis offers another opportunity to engage workers. Performing this analysis will help them track their trajectory for professional growth. Seeing the opportunities to earn rewards can motivate workers and encourage them to take control of their performance by always challenging themselves to go beyond the quota.
