Designing an incentive compensation program is more than just a one-step process. From planning to implementation and review, it’s important to remember that incentive compensation management is a multi-faceted process that requires consistent monitoring and tracking. Incentive compensation software simplifies the monitoring process. The software, which will help executives plot out specifics regarding base pay, commission rates, bonuses and merit increases, also provides a window into employee performance. ICM software allows an executive to track employee sales] and attendance, and see how an ICM plan is affecting performance. This is an invaluable tool, as a supervisor will be able to tweak a plan as necessary to drive performance as effectively as possible, and open up communications with staff to take their suggestions. A VP of sales can log into the program and soon will be presented with sales data sorted according to salesperson and department. An executive can even look into industry trends, allowing a company to stay sharp and compare sales numbers with those of a competitor’s. A supervisor will be able to see how different program participants respond to a particular incentive, such as a gift card, bonus or extra day off, and can shift or reinforce a plan when they see fit.
