All retail or field sales driven organizations typically maintain a rewards-based system to incentivize their employees’ and sales channel’s performance with cash payouts disbursed upon the fulfilment of certain targets and milestones. Calculation of these incentives require multiple data sets to be cited, leading to calculation of multiple key point indicators which ultimately translate into actual incentives. The calculation of these KPIs and incentives involve configuration of multiple rules having mathematical, statistical, textual and logical functions and all this is typically done manually via excel based tools.
Manual processes not only complicate the overall process in terms of configuration, but also make it very challenging to maintain consistency over cycles. Referring to historical data is another challenge faced by excel based tools, making it impossible to make corrections or revisions based on previous payouts. In traditional practice, incentive plans appear opaque to the end beneficiary – be it individuals or sales channels due to lack of transparency around KPIs and how the corresponding data indicators affect the overall performance. Due to manual processes involved, calculations are cumbersome due to challenges in aggregating data from various regions, channels & partners which in turn leads to delayed payments further eroding the trust factor that is so relevant in channel management. Good performers feel sidelined due to lack of clarity and delayed processes resulting in workforce attrition. These problem only escalates in nature as organizations scale up, making it harder to address incentive and payout needs as more employees and DSAs are added to the foray.
What are the key features and capabilities on an Incentive Management Platform?
Any sales incentive management solution should support the following key features –
- Sales compensation plan creation: Easy for Sales to create incentive compensation plans without IT assistance.
- Sales compensation process automation: Automates processes related to sales compensation, like incentive and quota plans, approvals, dispute resolution, payroll processing, etc.
- Incentive auditing/regulation compliance: Internal workflow and tracking elements create an audit trail and help ensure regulatory compliance.
- Sales compensation dashboards & forecasting: Analytics tools give sales ops managers and/or reps a view into sales performance in terms of sales vs. quotas, as well as earnings so far and projected payouts.
- Incentive modeling: Includes a sandbox or testing environment for users to explore what-if scenarios and develop incentive compensation strategies.
- Agile incentive strategy: Incentive plans are flexible; users can create and adjust compensation plans and incentive rules to strategically adapt to changes in sales performance/the marketplace/corporate goals.
- Build Dynamic Workflow triggers – Configure sales nudges, simulation-based incentive triggers, recommended product selling for incentive fulfilment etc.
- Device-agnostic support: Real-time reports about sales performance and compensation are accessible on mobile devices; may also allow managers to update plans and/or reps to submit questions, disputes, etc.
Decimal’s Incentive and Payout Management Platform
Our Incentive and Payout Management System addresses the aforementioned issues by allowing organizations to calculate their rewards accurately and dynamically for every payout cycle. The solution allows end-users to view their payouts in a designated dashboard with appropriate metrices as per an organization’s requirements. The solution also allows admin users to maintain master data and define dynamic KPIs and rules for calculating the payouts in a seamless and easy-to-use manner.
Some of the key features of the solution are listed below:
- Maintenance of master data tables such as employee data, product data etc.
- Integration with client’s internal systems for automatically fetching daily data updates (or transactional data) such as HRMS, CBS, Account Payables, CRM, data warehouse, data lakes etc.
- Leverage in-built ETL tool to transform raw data from databases to desired data structure and output.
- Configuration of KPIs and rules for calculation of payouts and incentives through a UI-based BRE platform.
- User friendly dashboards for end users for viewing their calculated incentives and related metrices as per bank’s requirements.
- Define and configure campaigns to be run for your sales and incentive planning
- Configure digital workflows to control audit and approval matrices and hierarchy
- Build and test Incentive models by configuring rules on-the-go and testing them directly in-app
- Configure local and global variables for rules and KPI definition for reuse across channels and product lines
- Flexible deployment models – Choose from on-prem or cloud deployment options as per your business needs.
To know more, visit us at – https://decimaltech.com/incentive-payout-management/