In a continued effort to motivate salespeople, organizations often build out intricate commission structures. The intention is to reward employees for a variety of actions, from sales to customer support and more. However, the more rules and conditions applied to commissions, the more complex the structure. That makes it far more difficult to manage efficiently and accurately.
While it can be a challenging task, a well-trained commission administrator knows how to handle a complex commission plan. In fact, our Managed Services administrators have a lot of experience navigating all types of commission plans. Based on that, we’ve learned a thing or two about how to simplify even complex commissions.
Even the most complex commission plans can be easily managed with a few key tools and methods.
If you need a reliable way to roll out a complex commission plan that keeps salespeople motivated, we recommend these methods.
Communicate the Details
We’ve said this before but communication is a critical part of the commission management process. Your salespeople must know what’s expected of them to get paid. So tell them. Provide a clear picture of their quotas and goals and how to reach them.
A good rule of thumb, insert commission requirements into documents, including a salesperson’s employment contract. Offer an information sheet distributed to employees to detail the requirements. Sales managers benefit from simply repeating the details to employees regularly to keep them moving forward.
Provide Direct Access to Reports
An effective way to continue communicating commission requirements is to allow employees to view their commissions in real-time. Sales organizations enrolled in Core’s Enterprise subscription have that ability.
The sales web reporting portal gives employees the ability to log in and view their commission progress. This also eliminates the need for bulk emailing reports every commission cycle since payees can see for themselves how they earned their paycheck.
Errors in commissions immediately impact employees. If a salesperson gets paid the wrong amount once, that will cause frustration that could affect the entire team. If it happens repeatedly, those employees may grow to distrust the organization and eventually seek other employment. That leaves organizations trying to backfill roles.
To avoid all of this, it’s important to eliminate the chance for error. By implementing a reliable commission automation solution that pulls data automatically and removes the need for manual labor, organizations can avoid those errors. Transitioning from spreadsheets, that require a lot of human interaction, to Core Commissions will immediately remove the possibility of mistakes in commission calculations.
Automate the Process
Next to errors, unreliable commission payments also cause employees to distrust their employers. That’s why commissions need to be run on a reliable schedule. Whether it’s monthly, quarterly, or yearly, commissions should be processed on time every cycle so that employees feel properly compensated.