Incentive compensation management

Incentive compensation management is the process of designing, implementing, and managing an incentive compensation plan

An incentive compensation plan pays an employee based on performance and pre-determined measures. Sales most often runs on incentive compensation, but customer support and marketing may also be paid a variable. This method of payment acts as a valuable tool for motivating employees and driving performance.

Incentive compensation management is important because it:

  • Aligns employee goals with the company’s
  • Motivates employees to work hard
  • Attracts and retains talent
  • Improves morale and sense of accomplishment

Additionally, incentive compensation management can provide a number of benefits to both employees and leadership. For employees, incentive compensation can provide a sense of ownership and responsibility for their work while acting as a motivator to perform at their best. 

For leadership, incentive compensation can help to attract and retain their team and increase productivity while adding to employee morale and satisfaction.

Incentive compensation management is a complex process, but it can be a valuable tool for motivating employees and driving performance. By carefully designing and implementing an incentive compensation plan, leadership can help to ensure that their employees are motivated to achieve their goals and that the company is successful.
To help operationalize and manage incentive compensation, consider adding sales comp software like QuotaPath.

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