Sales Commissions are a powerful medium of motivating the salesforce and push them to outperform boosting topline revenue. However, administration issues can distract your salesforce from their goals. Here are signs that your sales commission administration is struggling.

Organizations usually choose to incentivize sales performance as a percentage of revenue generated. This is one of the most prevalent sales commission structures. However, as organizations grow, selling model complexities increase and there's usually a need for more complex commission plans and hence better administration and incentive plan management.

Here are a few signs that your sales commission structure and ongoing management needs better handling:

  • Payment errors are not few and far between any longer. The salesforce has started noticing and it is impacting their confidence

  • Sales commissions are more often than not delayed and you are always struggling to meet the published payment timelines

  • Investigating errors is difficult due to the distributed nature of your data and the salesforce is also demanding more transparency in their commission calculations

  • Manual interventions in commission administration is increasing due to complexities and ad hoc 'payment adjustments' are on the rise

  • Manual processes like data consolidation, cleansing and cross verification takes longer in a processing cycle than the actual calculation

  • Auditing changes that happen to the process each cycle is becoming more difficult and a potential compliance crisis is brewing

  • The salesforce craves more data, analysis and performance reporting to analyze their own performance and book of accounts however such tools are not available to them

These signs are typical of dropping salesforce satisfaction and an inflation of operating and administrative costs in sales commissions administration

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Implementing an automated sales commission software results in improved payment accuracy, reduced operating expenses, and high transparency to the salesforce. The sales compensation solution reduces ambiguity in commission calculations and improves the overall effectiveness of your sales incentive plans. This also enables better engagement of the salesforce through insightful reporting and increased net selling time that boosts top-line revenue. More importantly, an automated solution creates an environment of trust, reducing attrition rates, and boosting salesperson morale. It also provides flexibility to implement new ideas in a timely manner to stay up to date with the dynamic business environment.

Sumeet Shah
Sumeet Shah

Sumeet has 15+ years of experience in incentive compensation management, goal setting, salesforce effectiveness (SFE), and process management with leading sales performance management organizations like Optymyze (formerly Synygy) and others.

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