Incentive compensation plans are designed to motivate employees to do their best work and outshine the competition. If a VP of sales or HR representative is considering introducing or making changes to an existing incentive compensation management plan, he or she will soon be presented with a wide variety of programs designed for success. Before putting the plan into place, though, there’s a lot to think about. Keep reading to find three tips on how to successfully carry out an ICM plan: 1. Keep it in reach Although large-scale goals are admirable and necessary to remember when designing a plan, it’s also important to make sure sales goals and other targets are attainable. It’s understandable that a VP of sales would want to make great strides and improve their company’s reputation, but trying to double sales overnight likely won’t work. In fact, it may backfire and make team members feel they have been set up to fail. Set reasonable goals for employees and reward them for their successes. 2. Start small A complete overhaul of an ICM plan may seem like a good idea – one that will quickly transform a company – but patience is key when implementing an incentive compensation plan. Many people are resistant to change, and regardless of how well the ICM plan turns out in the long run, there will always be dissenters who push back against leaders when sweeping changes are made. Instead, start small and put in place a few changes at a time, clearly communicating the details to a sales force. This will allow for a smooth, hassle-free transition. 3. Involve the team Invite feedback from a sales team throughout the implementation process to find out what works best and what doesn’t. Using incentive compensation software can streamline this process – staffers can log on to their individual ICM accounts, find out what they like and don’t like, and report back to their superiors, all on a single, easy-to-use platform.
