Even half of commission models do not provide companies with the desired sales results. Ineffective management of commissions and sales plans causes companies to lose sales opportunities and real income. Applications that automate these processes come to the rescue. Check if it's time for your organization to use professional tools.

What is incentive pay?

This is a variable part of the remuneration depending on sales results. Incentive Compensation Management includes sales commissions, bonuses, benefits, etc. The primary goal of ICM is to improve financial results by optimizing sales goals and maintaining salespeople's motivation. It is also important to keep incentive programs within margin so that the company can maximize revenues. When do you need an ICM system? Here are 4 symptoms (if at least one of them fits the situation in your company, consider implementing appropriate technology to support your sales team):

1. Errors and delays in remuneration

If calculating the exact commission has become problematic due to many variable elements or you do not pay it on time, it is time to think about a tool that will facilitate calculations and settlements. Most companies use spreadsheets, but it is easy to make mistakes, overwrite data or lose data. The need to manually process data and manually compile statements and then wait for approval by the appropriate person makes the process ineffective. Salary adjustments and disputes result in "background accounting" (salespeople check their own results, verify invoices and reports instead of spending time on more valuable tasks). And employee dissatisfaction and prolonged payments mean that you are no longer perceived as a reliable and credible employer. If this description fits your organization, it's time to think about automating the commission settlement process.

In the Qalcwise commission management application, remuneration is calculated by itself, you just need to set appropriate rules and alerts that will prevent incorrect data from being entered and will immediately inform you about any deviations. Sellers will gain access to a system where they will be able to check the correctness of the calculated remuneration before its payment. Additionally, thanks to the integration of the application with the accounting and payroll system, with one click you can generate a statement, send it for approval and create transfer orders for employees.

2. Lack of control and audit possibilities

Do you feel that you have no control over the implementation of your budget? At the end of the month, are you always surprised by the sales results, not necessarily positively? Are you having trouble eliminating hidden costs? You probably don't have a tool that will allow you to monitor the implementation of your plans and modify them on an ongoing basis. You are missing useful information and current data in one place. By moving this process to the Qalcwise app, you gain access to complete data in real time, in one convenient place. At any time, both the employer and employees can check the level of plan implementation and commissions due, as well as discuss controversial issues. Thanks to the fact that sellers can report sales on an ongoing basis (from any mobile device!), the data is always up to date and you do not have to wait for the end of the month to make changes or react to disturbing events. Thanks to the commission management application, you gain full transparency of processes and eliminate hidden costs!

3. Missed sales opportunities

When you learn about unrealized goals and sales plans, it is too late to react and save the results for the past period. You need real-time data and reporting on sales, trends and team performance. Worksheets won't give you that. According to Gartner research, companies lose up to 10% of sales due to the lack of information that would allow them to manage a team of salespeople and prevent missed opportunities. Only with ICM solutions can you prevent such losses. Moreover, with traditional sales management, without the support of advanced tools, it is difficult to support desired sales behaviors. For example, if you want to sell a certain type of product, your compensation plan should reflect your goals, ensuring that you are compensated lucratively. If you don't take care of the appropriate commission structure, you don't motivate you to sell the products that are most important to you.

4. Lack of team commitment

Do you think you have a self-made product, but sales are still poor? You have created an attractive (in your opinion) commission system, and yet salespeople barely implement the basic assumptions? Don't know how to motivate them to exceed their goals? Or maybe your remuneration system is so complicated that it does not involve the team? Additionally, communication is poor. And did you know that automation improves relationships and the quality of cooperation in companies? On the one hand, it relieves employees of tedious, repetitive tasks, freeing their energy. On the other hand, it facilitates communication and ensures better exchange of information. Thanks to this, salespeople and their superiors gain a convenient tool for providing feedback and do not waste time on administrative tasks and burdensome reporting. The commission management app also provides insightful analysis of employee performance. You gain the ability to create more realistic forecasts, optimize goals and minimize the risk of disputes. You can identify in advance people who need additional support or, on the contrary, those who show exceptionally good results in one area and remodel their goals. It is estimated that nearly half of motivational programs do not fulfill their purpose - they do not provide the desired results. Thanks to the application for managing variable remuneration components, you can quickly and conveniently remodel the entire remuneration system, providing effective incentives and motivation for salespeople. Is your sales team not achieving their goals? You don't control the implementation of your plans, and the administration of remuneration is becoming more and more time-consuming and expensive? Managing commissions and creating sales plans can be much more effective and enjoyable if you move them to an application on the Qalcwise platform. Its configuration will only take you a few hours, and if you need help, Qalcwise consultants will be happy to adapt it to the needs of your company.

Try our platform for free (no credit card required) and if you would like to find out whether our solutions will adapt to your company, we invite you to schedule a demo.