by Donya Rose
PeopleSoft White Paper Series, March 2003
Most companies today provide performance-based incentives to salespeople, as well as to executives. Increasingly, employers are also choosing to provide incentives to employees in other mission-critical functional areas.
However, the systems and processes used to administer incentives are often costly and confusing to payees at best, and error-fraught and demotivating to payees at worst. Those who administer incentives face a series of daunting challenges to ensure that the plans deliver measurable value for the company. A company failing to administer sales incentives well can experience significant
negative repercussions, including:
- Excessive costs in overpayment of incentives.
- Excessive costs of administering incentives.
- Demotivated salespeople.
- Lost selling time and selling capacity.
- Loss of revenue.
- Loss of salespeople and their relationships with customers.
- Managing incentives is a high-stakes undertaking, rarely yielding results that satisfy all stakeholders.
Click here to download and view the full white paper.