Incentive compensation plans can be used to not only increase sales and drive profits, but also to help motivate workers on a personal and professional level. Career development is highly important to organizational success, as employees who feel stuck in their current roles often become disengaged and can quickly lose motivation to be productive at work. Companies don’t have to accept this as inevitable, however, and can instead use incentive compensation management to help staff members develop professionally.
ICM plans motivate performance
One of the best ways to drive performance, whether it be in sales, HR or administration, is by using incentive compensation programs. ICM plans motivate workers, helping them realize their professional potential. When setting up a new ICM program, managers and supervisors can make clear to staff that by improving their own performance, they will be benefiting the company and opening themselves up to new opportunities like promotions, bonuses and merit increases.
Performance tracking opens lines of communication
Incentive compensation software is a powerful tool that helps companies and individuals find new routes for professional development. By using tracking features that come with the software, supervisors will be able to see exactly where an employee’s strengths and weaknesses lie. Once an executive has gathered this information, they can have open and honest conversations with staff members to help them push themselves professionally.
For example, perhaps a salesperson thrives particularly when selling a certain type of product. By tracking his or her performance, executives can guide these individuals toward management roles in which the salesperson can train other staff members to succeed. These kinds of suggestions not only motivate higher performance, but show team members that executives care, increasing engagement and productivity. By encouraging workers to develop professionally, executives can strengthen an organization from the inside out.
