According to the 2013 Canadian Incentive Trends Survey, incentive compensation programs are growing in popularity. The study found that more than 75 percent of organizations polled said they use incentives to drive employee performance, up more than 10 percent since 2012.
The survey also showed that incentive compensation management plans are effective – 62 percent of respondents said they gained an edge against competitors through the use of ICM programs. This is an increase from 2012, when 53 percent of respondents said the same, showing that some companies are learning how to master the incentive process.
One of the best ways a company can improve an ICM program is to begin using incentive compensation software. Keep reading to see how software can improve an ICM plan.
Streamline practices
Incentive compensation software can help a company streamline and simplify the ICM process. Rather than relying on manual spreadsheets or outdated computer programs, an executive can use ICM software to plan and implement an ICM program.
At the end of a day, a VP of sales will be able to see how staff are doing, whether they are coming close to earning their rewards or if a salesperson needs some guidance to get over a sales slump. Executives will have information ready at their fingertips, making the ICM process faster and more efficient.
Make adjustments
ICM software affords executives the flexibility to make adjustments to a plan even after it is in place. If a VP of sales notices that workers need an extra boost of motivation, he or she can use the software to introduce new incentives or competitions.
A plan can be customized to motivate individuals or groups of employees. An executive can make small adjustments to a plan to make sure it is ideal for a specific company, and to drive growth.
