Dramatic ROI

     Companies will reduce  ‘shadow accounting’ - sales people manually tracking sales for which they believe they should be receiving credit and reconciling this with their periodic commission checks. This can save companies up to 1 day per month per sales person (5% of reps monthly capacity). This additional time spent selling not only decreases labor cost by adding at least 5% more efficiency to the sales force, but also impacts revenue as the reps will have an additional day a month to sell.

     Improving employee satisfaction and confidence within the sales ranks in the commissioning process will decrease turnover (and associated productivity losses) and increase revenue (cost impact alone is estimated at $110K per sales rep) and revenue gained due to lower turnover can be significant (or said differently, revenue lost due to thin sales coverage will be minimized).

     Improved alignment between sales efforts & company goals will drive higher value add activities such as selling the right product mix. By placing higher commission rates on target product lines, Gross margins can be improved (through selling higher margin products) and/or cash flow can be improved (by encouraging the sale of aging inventory).

     The elimination of errors in commission payments can significantly lower the cost of sales. By eliminating overpayments (estimated at between 5-15 % of commissions paid) the cost of sales can be greatly reduced. Additional benefits come from the elimination of ill will that attempts by companies to recover these commission dollars can generate.

     Conversely, the elimination of commission underpayments will reduce administrative costs associated with dealing with disputes over underpayment of commissions and eliminate another source of ill will within the employee ranks.

     The automation of business processes related to such activities as approvals (as in the case of a change to commission rates, the periodic approval of commissions payouts or the approval of a specific override) dispute resolution, notifications, etc. drive significant cost savings and much more streamlined business processes.

 

     Companies will realize cost savings through the application of NetCommissions technology that may result in headcount reduction of the compensation administration team. These resources are freed up to address other issues more vital to the core competence of the companBy providing a critical mass of process experts whose sole focus is the application of NetCommissions technology to their business process, customers will realize cost savings when they choose to implement or update their incentive compensation plans.

     The incentive compensation process is conceptually simple, but very hard to do well. Situations are common where poor process execution can drive low levels of moral, high costs, and either a sense of mistrust or entitlement throughout the employee base. Partnering with NetCommissions frees a company to focus on what it does well – its core competencies – while teaming with experts whose sole focus isto help you deliver Best In Class the incentive compensation process.

 

     The combination of a highly complex business process and the high cost of failure makes this a process one best handled by experts; NetCommissions. Managing incentive compensation can be very complex with incentive plans built on a complex set of interdependent business rules governing such matters as credit assignment for each sales transaction, eligibility, policies and procedures, etc. Companies with large sales forces in very competitive markets, and/or companies that are growing at a very fast rate will quickly outgrow their capacity to manage this process in an effective manner. The tasks involved are time consuming, technology intensive and fraught with high risks associated with workforce alignment and moral.

 

     By choosing a Software-as-a Service approach (SaaS) the incentive compensation process, companies shield themselves from the current and future technology costs tied to managing the incentive compensation process internally.

     As the saying goes, ‘people do what they get paid to do’. The ability to respond quicker to a changing competitive environment through the use of a flexible commissioning system can be a tremendous strategic advantage for our customers.

 

     Incentive compensation is, above all, a method of communicating feedback to an employee population in a timeframe and in terms that are meaningful to them. By investing in the incentive compensation process, buy-in throughout the company will be improved.