Setting up the right incentive compensation program can transform a business. Refined plans motivate employees and drive business forward, increasing revenues and productivity. These benefits are exactly why so many VPs of sales and managers implement ICM plans. However, ICM is hardly a one-size-fits-all endeavor. Keep reading to find three things to consider when designing an ICM plan:
1. Who will participate
Many incentive compensation plans apply solely to the sales force. This is a tried and true method, and works for many businesses. However, if a company is looking to improve performance across the board, they may want to consider offering bonuses or rewards to all members of a company.
Although administration staff and HR representatives do not contribute directly to sales, their time and attendance is valuable. VPs of sales can set up ICM plans to include rewards for timeliness and attendance – when administrators are on time and able to quickly refer calls, the entire company gets a boost. Consider where improvements need to be made, and adjust ICM participants from there.
2. Group vs. individual
Traditionally, employees earned incentives through competition with their fellow staff members. This is still effective, but it may also be worth it to shake it up a bit and include some group incentives, too. Group competitions can increase office morale, encourage teamwork and open up dialogue throughout a company.
3. How to implement
Designing and selecting the proper program can be stressful, as can the implementation process. It may be wise to choose a gradual phasing-in so staff members can adjust to the new plan. Incentive compensation software can be a massive help during this process.
With ICM software, team members can each access their personalized sales plans and incentive goals. With this information, they will be able to fully understand the plan, making for a smooth transition process.
