incentive compensation can be costly for employers to administer and manage. Without the right resources, manual efforts to track and measure employee performance can be time-consuming and frustrating. The admin work alone can reduce an organization’s profitability – as the overhead of managing an inefficient incentive program inhibits admins from spending time on more revenue-driving activities.
Best practices for designing effective incentive compensation plans
while there’s no set way to design an incentive compensation plan, there are a few key factors that will ensure you’re setting yourself up for success.
Define a clear structure
define which teams will earn incentive compensation. Then consider the goals of each of these teams. Develop your plans around the factors directly within this team’s thailand phone number list control,
And pay close attention to. The behaviors you want to incentivize.
For example, for an inbound sdr team, you’ll want. To incentivize the activities that. Indicate high inbound sdr performance – things like lead response. Time and qualified opportunity generation. If you neglect these factors and only reward closed-won revenue. You’ll fail to incentivize inbound sdrs to perform. Their key responsibilities.
Establish and consistently measure clear performance metrics
make sure you are measuring the same core metrics consistently, over time. You need to have reliable data around metrics like closed-won revenue, demos cn leads booked, and qualified lead generation to determine how these specific results should be weighed in protects your business and stakeholders your incentive plans.