Small errors in sales compensation numbers may not seem like a serious issue, but repeated mistakes, even tiny ones, can add up to cost a company big money. Using spreadsheets to track sales numbers is risky and highly prone to human error. It’s also incredibly time-consuming, and for HR professionals who are handling countless other tasks to keep a company running smoothly, spending time at the end of each day inputting sales numbers is a waste of resources.
Incentive compensation software, however, automatically updates sales numbers into an advanced system, so an HR rep can be certain the information they’re using to compensate workers is correct.
The risks of implementing a sales compensation plan that is riddled with errors may cost a company more than just extra dollars when employees are overcompensated. These mistakes can result in a lack of compliance with federal labor laws and tax codes – if certain mistakes are found out, a business could end up paying hefty fines.
Incentive compensation software is a tool that provides financial transparency to make sure a company stays on track with sales and compensates employees appropriately.
