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Iconixx Insights BlogIncentive Compensation Management

Improve company culture with incentive compensation plans

By August 20, 2013June 11th, 2024No Comments

Company culture is more important than many managers and executives may think, as companies with a healthy work environment have an easier time retaining top employees and keeping workers motivated. A negative company culture, on the other hand, can be toxic for a business, as employees become increasingly disengaged and feel poorly about their work situation.

Supervisors shouldn’t be surprised when job application numbers drop if an organization has a negative company culture. There are many sites online where current and former employees can review a company on criteria such as salary plans, benefits and work culture – potential candidates often look for these reviews before they even apply. (Provigil)

If a company is struggling to create a positive company culture, it can use incentive compensation plans as a launching pad to improve a work environment. Keep reading to find out how incentive compensation management plans can help a company thrive.

Show employees they are valued
One of the greatest benefits of a successful incentive compensation plan is that the right program will show employees that a company values their hard work. By setting up a program complete with bonuses, merit increases or other rewards, a supervisor can recognize employees for their dedication to a company and ability to bring in higher revenues.

When employees feel they are valued, they are more likely to be happy at work. In this way, ICM plans are effective at improving morale and overall company culture. Positive staffers are a great influence on their coworkers, especially on new hires. Company culture can improve one employee at a time.

Improve workplace relationships
Being able to share experiences with coworkers and trusting one another is another hallmark of a positive company culture. A supervisor can use ICM plans to help foster positive relationships between salespeople and other colleagues by encouraging team members to work with one another.

An executive can promote teamwork by setting up group-based sales competitions, and use an ICM plan to assign rewards to the top earning group. While working together, employees will learn how others work and will become comfortable sharing ideas with their colleagues. Encouraging positive work relationships between coworkers will help contribute to an upbeat work culture.

Increase employee retention
When workers realize that how much they earn is up to them, they will push themselves further and drive sales for a company. Having a sense of freedom in a workplace will improve happiness, and as a result, workers are more likely to stick around at a company.

As any HR professional knows, employee retention is vital to success. Dedicating countless hours to post a job listing, sorting through applications and training new hires is both time consuming and expensive. Creating a work culture in which employees stay on the payroll for years instead of months benefits a company as well as its employees.

Ensure a strong reputation
A company’s reputation is essential to success. Unsatisfied current and former employees often turn to online forums to express their discontent over payment plans and workplace culture. If a company offers incentive compensation plans that help workers thrive, a company’s reputation will rise.

Rather than finding negative company reviews online, when potential applicants search for information on a company, they will be presented with information on effective ICM programs, as well as a positive work environment. Top candidates are more likely to apply for jobs where they know they can earn a living wage and extra compensation as a result of their own positive performance and work in a positive environment.

If a company is looking for a solution to creating an incentive compensation plan that will improve company culture as well as sales numbers, it can use incentive compensation software, which helps companies implement effective ICM plans and track sales performance.

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Ballast Point Ventures

Ballast Point Ventures is a later-stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast, and Texas. The BPV partners have more than 70 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, financial services, and consumer goods. BPV has $200 million under management and seeks to make equity investments ranging from $3 million to $10 million.

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Harbert Management Corporation

Harbert Management Corporation seeks to generate superior returns for their investors by identifying and investing in the most promising early growth stage companies in the Southeastern U.S. HMC seeks to capitalize on what it believes are compelling regional dynamics, such as a strong and fast-growing economy, significant research and development activities, and an established entrepreneurial community. The HMC team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. With offices in Birmingham, Alabama; Richmond, Virginia; and Gainesville, Florida, it’s well positioned to partner with entrepreneurs throughout the Southeast.

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KBH Ventures

KBH Ventures was an early investor in Iconixx Software. KBH's investment philosophy plays a significant role in the firm's successful track record. KBH believes in running businesses to be cashflow positive and profitable every month. Startups and companies in a startup mode, such as one that has been purchased in distress, are expected to generate revenue within the first six months and reach profitability within the first 12 to 18 months. KBH also only invests in or acquires companies that are in the startup phase or have less than $20 million in revenues. KBH targets technology companies that offer business-to-business services.

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S3 Ventures

S3 Ventures is an early expansion and growth stage venture firm with $200 million under management. It’s focused on information technology solutions that solve large business problems. S3 also invests in medical devices that improve the human condition. S3 invests in category-defining opportunities. It partners with the team and help focus methodically on what it takes to build a successful company. S3 today helps talented entrepreneurs take their technology and market knowledge and form valuable businesses in a repeatable fashion. Investment sizes start at several million or more for Series A, B, and C financing.