Commission Tracking with Incentive Compensation Software
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.
While many employees think putting in extra hours show their employer they are working hard and dedicated to the job, long hours may actually lower productivity and engagement in the workplace. Too many work hours take a toll on workers' well-being, which could lead to an increase in stress and poor health. Employers are encouraged to take a different approach to get workers to boost their performance.
Instead of working longer, employers may think about new ways to work smarter, such as using commission tracking to pinpoint which staff members are showing results, regardless of after hours spent in the office. Rewarding employees is an effective way to improve morale and performance without having workers sacrifice their health and well-being to do so.
Health hazards associated with working long hours
There are many reasons why employers should focus on monitoring performance instead of long hours. For one, working longer hours is detrimental to workers' health. A report in The Economist shows there is a correlation to the number of hours worked and the potential years of life lost as a result.
The more hours workers from member countries of the Organisation for Economic Co-operation and Development (OECD), which includes the U.S., had put in, the more likely they were to die a premature death. The article notes that a lengthy work period could strain a person's health by inducing stress that eventually causes a variety of health effects like heart disease and depression. Since long hours could impact employees' work and home life, employers may want to look into ways for eliminating job stress.
Focus on tracking performance, not hours
To maintain workers' health and well-being, employers could introduce new management techniques that allow staff to work smarter instead of harder or longer. One of the ways employers can change things up at work is by encouraging workers to build their working periods around a routine, Inc. Magazine said. By having a daily routine - such as beginning work after only after checking emails or finishing a cup of coffee - it's easier for employees to get into that work mindset that allows them to be more productive.
Tracking performance instead of hours can also help employers maintain a productive workplace by using commission tracking software to measure performance. This software is a simple solution for measuring results as opposed to the number of hours worked.