Capstone Insights set out to measure the use of and attitudes toward current compensation and commissioning technologies. After surveying 400 sales operations professional, they came out with four key takeaways:
1. Lack of confidence in current solutions
2. Managing multiple platforms is a nightmare
3. There must be a single source of truth
4. AI is the future, but there’s confusion about current use
A crucial piece of sales execution relies on maximizing sales productivity and providing incentives for positive sales behavior. However, companies face many challenges when dealing with this issue.
Traditional methods of commission policy management are manual, expensive, error prone and lack the required transparency demanded by modern sellers. Even though there are no initial setup costs for spreadsheets, it will end up causing you to leak money. This may be caused by errors and overpayments, low sales productivity, shadow accounting, data security risks, or even penalties for noncompliance with accounting standards.
In this day and age, with the kind of technology we have at our fingertips, none of the above should be happening.
Introducing SAP Commissions, an end-to-end configurable solution that manages your entire incentive compensation process from sales order to payment for your direct and indirect sales force.
- Reduces errors
- Aligns sales to corporate goals
- Helps you spend your compensation budget wisely
SAP Commissions enables administrators to quickly create, refine and distribute effective commission plans. It has been optimized to process transactions and analytics faster for increased agility and real-time insights.
A Compensation Plan isn’t Just a Numbers Game
Keep in mind, a compensation plan isn’t just a numbers game. While the numbers are important and sales representative care about their pay, driving behavior is also about the entire rewards picture. The purpose of sales compensation is to drive specific sales behavior aligned with desired business objectives. Flexible enough to provide agility in fast-moving market situations, SAP Commissions is designed to automate, centralize and optimize incentive compensation management.
The solution delivers complete transparency and control over past, present, and future compensation payments, providing detailed, end-to-end insights through powerful dashboards, prepackaged reports, and robust modeling. Not only will this solution help you reduce errors, but it will align sales to corporate goals and maximize the effectiveness of your compensation plans.
|Business Problem||SAP Commissions|
|Slow speed of calculation||Pay your sales force as often as you want- monthly, weekly, even daily|
|Lack of confidence in calculation results||Results are 100% consistent. Error rates from between 3% and 8% all the way down to 0.1%|
|Difficulty in resolving compensation disputes||Prepackaged workflows route disputes to the right administrator, who can investigate and settle disputes in seconds|
|Lack of visibility on payouts and performance for sales reps||Dashboards and prebuilt reports for sales reps and sales managers provide real-time visibility into historical, current, and future states of payouts and performance. They are accessible anytime, anywhere|
|Limited reporting on sales performance and compensation spends for sales operations, finance, and sales leadership||a library of graphical, prebuilt reports tracking historical and current spends and trends across business units provides a holistic view of sales data. A report writer within the solution allows quick creation of custom reports|
|Complex compensation plan design, including SPIFs, bonuses draws, accelerators and thresholds||prebuilt plan components and a drag-and-drop interface mean plans never have to be built from scratch. Preconfigured plan logic ensures every plan calculates accurately|
|Inaccurate payment of new hires, recently promoted staff, overlays, teams, and channel partners||People data is automatically pulled from the HR system in real time. Drag-and-drop options assign credit accurately across complex roles and relationships|
|Difficulty modeling incentive compensation plans and bonuses to understand their impact before going live with them||Prebuild modeling and forecasting functionality allows users to model and compare impact of comp plans, incentives, and bonuses side by side through a simple point-and-click interface|
|Integrating with CRM, ERP, analytics, CPQ, and other business software||Connectors prebuilt for the top CRM, ERP, HR, CPQ and analytics solutions connect sales data directly to these systems.|
|Demands from sales force for mobility||dedicated mobile apps allow sales reps to see real-time payouts and performance even when they are in the field|
Manage your entire incentive compensation management distribution, and approval, while reducing overhead and maximizing value. Get in touch with our experts to optimize outcomes and deliver superior performance by clicking here!